DEVELOPING SMART CONTRACT-BASED SOLUTIONS FOR SECURE AND TRANSPARENT FINANCIAL TRANSACTIONS IN DECENTRALIZED APPLICATIONS

Abstract

Financial industry operations have been substantially reformed through the adoption of decentralized applications (dApps) as well as blockchain technology during recent years. This research aims to handle three main issues within decentralised finance (DeFi) by focusing on transaction functionality execution and system scalability and enhanced security features. We implemented secure measures for integer overflows and reentrancy avoidance through extensive testing which proved successful in eliminating reentrancy gaps and integer overflows. The scalability tests demonstrated functioning performance with network congestion but bigger congestion caused noticeable delays alongside elevated latency levels. Due to the nature of large transaction processing additional optimization measures need implementation. The results of functional testing showed that 100% of token transfers succeeded together with 97.5% success rate for asset management operations. The success rate of decentralized trade operations reached 96% according to results. Smart contract implementations succeed in protecting transactions yet need additional work to increase scalability and improve decentralized exchange functions. The research concludes that smart contract-based DeFi solutions show substantial promise yet demands continuous advancement to gain more widespread market adoption.