Comprehensive Insights into Smart Contracts: Architecture, Sectoral Applications, Security Analysis, and Legal Frameworks

Most conventional contract systems have issues with middlemen, drawn-out implementation procedures, fraud risk, and human error. Considering this, the project uses smart contract technology to provide a decentralized, automated, and safe solution in an effort to address such inefficiencies and the t...

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Main Authors: Farah Mazlan, Nur Faizah Omar, Nik Nor Muhammad Saifudin Nik Mohd Kamal, Ahmad Anwar Zainuddin
Format: Article
Language:English
Published: MMU Press 2025-02-01
Series:Journal of Informatics and Web Engineering
Subjects:
Online Access:https://journals.mmupress.com/index.php/jiwe/article/view/1197
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author Farah Mazlan
Nur Faizah Omar
Nik Nor Muhammad Saifudin Nik Mohd Kamal
Ahmad Anwar Zainuddin
author_facet Farah Mazlan
Nur Faizah Omar
Nik Nor Muhammad Saifudin Nik Mohd Kamal
Ahmad Anwar Zainuddin
author_sort Farah Mazlan
collection DOAJ
description Most conventional contract systems have issues with middlemen, drawn-out implementation procedures, fraud risk, and human error. Considering this, the project uses smart contract technology to provide a decentralized, automated, and safe solution in an effort to address such inefficiencies and the trust issues they raise. Smart contracts enable self-execution of contracts whose conditions are expressed explicitly in lines of code by presenting solutions using blockchain technology. The concept behind a smart contract is that each party may carry out their portion of the duties without depending on a third party and the contract will automatically execute in the meantime. This automation significantly reduces transaction costs while simultaneously improving security and transparency. With the use of this underlying technology, smart contracts may be used to directly code parties' compliance with their duties under the agreement and the blockchain will keep an immutable record of every transaction. For smooth and dependable transactions, smart contracts offer a dependable and effective substitute for conventional contract methods. Furthermore, integrating smart contracts with cutting-edge technologies like machine learning and artificial intelligence could improve decision-making and accelerate operations in a variety of sectors. Their application extends beyond financial transactions to areas such as supply chain management, energy trading, and healthcare, showcasing their versatility. Despite these advantages, issues like energy consumption, scalability, and regulatory compliance still need creative solutions. Ongoing research and development aim to address these issues, fostering the evolution of smarter, more sustainable contract systems. By leveraging these advancements, smart contracts keep opening the door for a revolution in the digital economy that will increase productivity and confidence.
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spelling doaj-art-4073bb1880da4abda8e4e23e600d8f592025-08-20T02:14:46ZengMMU PressJournal of Informatics and Web Engineering2821-370X2025-02-014111710.33093/jiwe.2025.4.1.11197Comprehensive Insights into Smart Contracts: Architecture, Sectoral Applications, Security Analysis, and Legal FrameworksFarah Mazlan0Nur Faizah Omar1Nik Nor Muhammad Saifudin Nik Mohd Kamal2Ahmad Anwar Zainuddin3https://orcid.org/0000-0001-6822-0075International Islamic University Malaysia, MalaysiaInternational Islamic University Malaysia, MalaysiaInternational Islamic University Malaysia, MalaysiaInternational Islamic University Malaysia, MalaysiaMost conventional contract systems have issues with middlemen, drawn-out implementation procedures, fraud risk, and human error. Considering this, the project uses smart contract technology to provide a decentralized, automated, and safe solution in an effort to address such inefficiencies and the trust issues they raise. Smart contracts enable self-execution of contracts whose conditions are expressed explicitly in lines of code by presenting solutions using blockchain technology. The concept behind a smart contract is that each party may carry out their portion of the duties without depending on a third party and the contract will automatically execute in the meantime. This automation significantly reduces transaction costs while simultaneously improving security and transparency. With the use of this underlying technology, smart contracts may be used to directly code parties' compliance with their duties under the agreement and the blockchain will keep an immutable record of every transaction. For smooth and dependable transactions, smart contracts offer a dependable and effective substitute for conventional contract methods. Furthermore, integrating smart contracts with cutting-edge technologies like machine learning and artificial intelligence could improve decision-making and accelerate operations in a variety of sectors. Their application extends beyond financial transactions to areas such as supply chain management, energy trading, and healthcare, showcasing their versatility. Despite these advantages, issues like energy consumption, scalability, and regulatory compliance still need creative solutions. Ongoing research and development aim to address these issues, fostering the evolution of smarter, more sustainable contract systems. By leveraging these advancements, smart contracts keep opening the door for a revolution in the digital economy that will increase productivity and confidence.https://journals.mmupress.com/index.php/jiwe/article/view/1197smart contractsblockchain technologydecentralizationautomationsecurity and transparencyimmutable record
spellingShingle Farah Mazlan
Nur Faizah Omar
Nik Nor Muhammad Saifudin Nik Mohd Kamal
Ahmad Anwar Zainuddin
Comprehensive Insights into Smart Contracts: Architecture, Sectoral Applications, Security Analysis, and Legal Frameworks
Journal of Informatics and Web Engineering
smart contracts
blockchain technology
decentralization
automation
security and transparency
immutable record
title Comprehensive Insights into Smart Contracts: Architecture, Sectoral Applications, Security Analysis, and Legal Frameworks
title_full Comprehensive Insights into Smart Contracts: Architecture, Sectoral Applications, Security Analysis, and Legal Frameworks
title_fullStr Comprehensive Insights into Smart Contracts: Architecture, Sectoral Applications, Security Analysis, and Legal Frameworks
title_full_unstemmed Comprehensive Insights into Smart Contracts: Architecture, Sectoral Applications, Security Analysis, and Legal Frameworks
title_short Comprehensive Insights into Smart Contracts: Architecture, Sectoral Applications, Security Analysis, and Legal Frameworks
title_sort comprehensive insights into smart contracts architecture sectoral applications security analysis and legal frameworks
topic smart contracts
blockchain technology
decentralization
automation
security and transparency
immutable record
url https://journals.mmupress.com/index.php/jiwe/article/view/1197
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