Visvesvaraya Technological University Belagavi,

Karnataka
National Education Society®
Jawaharlal Nehru New College of Engineering
Department of Computer Science and Engineering

ATechnical Seminar Presentation

On
“Smart Contract Automation Trust Through Blockchain”
Presented By
DIVYA S B 4JN21CS048

Under the Guidance of : Coordinator :

Mr. Vedananda D E B.E., M.Tech. Dr. Narendra Kumar S B.E., M.Tech., Ph.D
Asst. Professor, Dept. of CS&E Asst. Professor, Dept. of CS&E
JNNCE, Shivamogga JNNCE, Shivamogga
1
Smart Contract
Automation
Smart contract automation revolutionizes how agreements are
executed, leveraging blockchain technology to enhance trust,
transparency, and efficiency across various industries.
Introduction to Smart Contracts
Smart contracts are self-executing contracts with the terms of the agreement directly written into
code, enabling automatic enforcement and execution once predefined conditions are met.

What Are Smart Benefits of Automation Importance in Modern

Contracts? Business
Self-executing contracts Reduces reliance on Increases trust with secured
written in code. intermediaries and errors. and transparent agreements.
Understanding Blockchain
Technology
Definition of Blockchain
Decentralized ledger that securely records transactions.

Key Features
Immutability and consensus mechanisms.

Enabling Smart Contracts

Blockchain provides the foundation for secure, automated, and
self-executing contracts without intermediaries.
Trust Mechanisms in Blockchain
Trust Mechanisms in Blockchain

Decentralization Immutability Consensus Mechanisms

By distributing data across a Once data is recorded on the Mechanisms such as Proof of Work
network, blockchain prevents blockchain, it cannot be changed, and Proof of Stake validate
centralized control and reduces the ensuring that contract terms remain transactions, ensuring that all
risk of fraud or manipulation. intact and verifiable. parties agree to the state of the
blockchain.
Evolution of Smart Contracts
1 Historical Context
The concept of smart contracts was first introduced by Nick Szabo in
1994, but real-world applications emerged with Ethereum's launch in
2015.

2 Growth Trends
Increasing adoption across sectors such as finance, supply chain, and
real estate has made smart contracts a pivotal technology for business
automation.

3 Future Directions
Looking ahead, advancements like AI-driven smart contracts and
improved legislative frameworks will augment their functionality and
acceptance.
Key Components of Smart Contracts
Smart contracts are innovative tools that revolutionize traditional contract practices.

1 Digital Code 2 Blockchain Integration

Smart contracts are self-executing programs detailing Stored on the blockchain for security and permanence.
the terms.

3 Automated Execution 4 Transparency and Security

Contracts execute automatically when conditions are Records are visible on the blockchain, ensuring
met. accountability.
Smart Contract Automation Process
1 2 3 4

Creation Condition Setting Automation Permanence

Workflow
Smart contracts are Predefined conditions Contracts All outputs and
coded and deployed dictate how and when automatically execute transactions are
onto the blockchain. contracts execute. actions once permanently recorded
conditions are met. on the blockchain.
Applications of Smart Contracts

Finance Supply Chain Real Estate Healthcare Insurance

Management Transactions Services
Facilitates Enhances Streamlines
Securely Automates
automated transparency and property
manages medical claims
lending, traceability, transactions,
records and processing,
borrowing, and automating reducing closing
patient consent, validating claims
trading without inventory costs by
automating instantaneously.
intermediaries. management and eliminating
processes.
payments. paperwork.
Workflow of Smart Contract Automation
1 2 3 4 5

Deployment Condition Execution Trigger Recording Compliance

Contracts are Verification Trigger Results Checks
developed and Smart contracts Executions are Results from contract Automated
deployed onto a check inputs against automatically contract execution mechanisms for
blockchain, ready for predefined criteria to initiated when the are permanently compliance and
for use once ensure validity before conditions are met, logged on the tracking ensure
conditions are agreed execution. met, ensuring blockchain for future adherence to
agreed upon. seamless operations. future reference and regulatory standards.
operations. and auditing.
Security Challenges in Smart Contracts

Reentrancy Attacks Integer Overflows Front Running Oracle Manipulation

Miners reorder Risks
Exploit contracts via Numeric issues leading to transactions for profit
unauthorized recursive leading to financial based on insight.
Data inaccuracies
calls. integrity problems. threaten contract
outcomes.
Solutions for Smart Contract
Security
Formal Verification Regular Auditing
Employing mathematical Continual code testing and peer
techniques to prove the reviews help identify and rectify
correctness of contract logic. vulnerabilities.

Multi-Signature Usage of Secure Oracles

Protocols
Requiring multiple sign-offs for Implementing reliable data
contract execution enhances sources ensures the validity of
security. external inputs.
Smart Contract Execution Platforms

Ethereum Hyperledger Binance Smart Polkadot

Fabric Chain
Leading platform for Designed for enterprise Offers fast transactions Provides cross-chain
developing smart solutions, focusing on and low fees for functionality, enhancing
contracts, customizing permissioned networks. decentralized blockchain scalability.
with Solidity. applications.
Tools for Smart Contract
Development
Solidity Remix IDE
A high-level programming A web-based integrated
language specifically designed for development environment that
writing contracts on the Ethereum empowers developers to write,
platform. compile, and deploy smart
contracts easily.

Truffle Suite Hardhat

A powerful development A versatile node-based
framework, offering tools for development and testing
contract compilation, deployment, environment that allows
and testing, facilitating a smooth developers to deploy and maintain
development cycle. contracts efficiently.
Future Enhancements
AI-Powered Contracts Interoperability
Integration of AI will allow Greater focus on developing
contracts to adapt based on systems allowing different
historical data and perform blockchain ecosystems to
predictive analyses for more communicate and utilize smart
intelligent execution. contracts seamlessly.

Privacy-Preserving Regulatory Frameworks

Technologies
Advances in areas like zero- As regulations evolve, smart
knowledge proofs will enhance contracts will require better
user privacy and protect integration with legal systems to
sensitive information in be widely accepted.
transactions.
Case Study – Smart Contracts in Finance
Decentralized finance eliminates traditional intermediaries, using smart contracts for secure, automated
financial transactions.

DeFi Revolution Real-World Example Efficient Markets

Decentralized finance eliminates Platforms like Aave and Enhanced efficiency and reduced
traditional intermediaries, using Compound allow users to lend and costs empower users, enabling
smart contracts for secure, borrow assets, with smart contracts more participants to access
automated financial transactions. managing all agreements without financial services without barriers.
needing banks.
Limitations & Challenges
Scalability Issues Legal Ambiguity
High transaction fees and slow Lack of clear regulations
processing times hinder complicates legal enforcement.
adoption.

Security Vulnerabilities Reliance on External Data

Bugs in code can lead to Smart contracts depend on
significant financial losses. oracles, risking reliability.
Legal & Ethical Considerations
Legal & Ethical considerations are essential for the effective
implementation of smart contracts.

1 Compliance Challenges
Understanding how existing laws apply to smart contracts is crucial
for their deployment in various sectors.

2 Privacy Concerns
Clear guidelines are needed to protect user data within smart
contracts, ensuring privacy alongside transparency.

3 Ethical Use Cases

It’s critical to establish frameworks that prevent exploitation or
unethical usage of smart contracts in finance and beyond.
Comparison of Smart Contracts
vs Traditional Contracts
Comparison of Smart Contracts vs Traditional Contracts

Traditional Contracts
Paper-based, requiring manual execution, often involved lengthy
verification and enforcement processes that can be error-prone.

Smart Contracts Advantages

They provide superior speed, automated enforcement, and integrated
security through blockchain technology, significantly reducing costs and
delays.

Transformational Potential
By removing intermediaries, smart contracts enhance efficiency and
reliability, reshaping industries while fostering new business models.
Impact of Blockchain
Automation
Cost Efficiency Speed Fraud
Improvements Resistance
Eliminating Automated The inherent
intermediaries contract execution security features of
directly reduces results in faster blockchain
transaction costs processing times significantly
and resource compared to reduce the
usage. traditional likelihood of
methods. fraud.
References
[1]. Mustafa, I., McGibney, A., & Rea, S. (2024). Smart contract life-cycle management: An engineering
framework for the generation of robust and verifiable smart contracts. Frontiers in Blockchain, 6, 1276233.
[2]. Chen, Y., Sun, Z., Gong, Z., & Hao, D. (2024). Improving smart contract security with contrastive learning-
based vulnerability detection. arXiv preprint arXiv:2404.17839.
[3]. Iuliano, G., & Di Nucci, D. (2024). Smart contract vulnerabilities, tools, and benchmarks: An updated
systematic literature review. arXiv preprint arXiv:2412.01719.
[4]. Hossain, T., Bappy, F. H., Zaman, T. S., & Islam, T. (2024). SEAM: A secure automated and maintainable
smart contract upgrade framework. arXiv preprint arXiv:2412.00680.
[5]. Wei, Z., Sun, J., Zhang, Z., Zhang, X., Li, M., & Hou, Z. (2024). LLM-SmartAudit: Advanced smart contract
vulnerability detection. arXiv preprint arXiv:2410.09381.
[6]. Rahman, S. (2024). Smart contracts: The blockchain revolution in contract law. International Journal for
Multidisciplinary Research, 6(3).
[7]. Chen, Y., Sun, Z., Gong, Z., & Hao, D. (2024). Improving smart contract security with contrastive learning-
Thank You