SMART CONTRACTS FOR FINANCIAL SECURITY: PROCESS AUTOMATION, RISK MITIGATION, AND ORGANIZATIONAL IMPLICATIONS

Svetlana MARKOVIĆ; Radovan VLADISAVLJEVIĆ; Marko MARKOVIĆ

doi:10.5937/jpmnt14-68025

Svetlana MARKOVIĆ Faculty of Law for Commerce and Judiciary, Novi Sad, University Business Academy in Novi Sad, Serbia https://orcid.org/0000-0003-2776-6519
Radovan VLADISAVLJEVIĆ Faculty of Economics and Engineering Management, Novi Sad, University Business Academy in Novi Sad, Serbia https://orcid.org/0000-0002-8502-8584
Marko MARKOVIĆ Faculty of Applied Management, Economics and Finance, Belgrade, University Business Academy in Novi Sad, Serbia https://orcid.org/0009-0002-6449-6589

DOI: https://doi.org/10.5937/jpmnt14-68025

Sažetak

Smart contracts are one of the most prevalent and important blockchain-based technologies in the field of financial security, as the automatic execution of predefined rules provides additional efficiency, lowers costs and minimizes the involvement of intermediaries. This research will examine the use of smart contracts for process automation, risk reduction and organizational restructuring in the financial sector. In particular, the interaction between centralized and decentralized financial systems, the technology behind the implementation of blockchain and security issues associated with the use of smart contracts will be considered. At the same time, escrows will be presented as an example of the practical use of smart contracts for financial operations. The results of this analysis will show that smart contracts can be used as a means to increase the reliability of financial operations; however, their widespread use depends on proper regulation, security assessment and integration with the existing financial infrastructure.

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