Blockchain-Based Security and Privacy for Smart Contracts

Abstract

The speedy growth of cryptocurrencies in recent years and Blockchain technology has revived smart contracts (SC). Decentralization, verifiability, and enforceability are SC characteristics that allow contract terms to be enforced between untrustworthy parties without the interference of a central server or centralized authority. Traditional sectors, such as finance, the Internet of Things (IoT), and management, are expected to be transformed by smart contracts. Smart contracts could be used in a wide range of scenarios in the digital economy and smart industries such as banking, marketing, sanitation, and the IoT. Not only that, but the SC may also provide improvements in the mainstream development process. For the security of information in distributed networks, Blockchain systems such as Ethereum and Hyperledger are trending. The problems related to privacy and security of information need enhancement through analysis, and we discuss the same in this chapter. Blockchain creates secure smart contracts and has some unique features, including: (a) The Smart Contract software code is recorded and tested on the Blockchain, thereby rendering the Contract resistant to interference. (b) The smart contract execution is imposed anonymously, trustless single nodes with no centralized power and cooperation of third-party administrations. (c) The Smart Contract acts as an intelligent agent with its cryptocurrency (or possibly other digital assets) to transfer when certain conditions are met. Smart contracts are computer protocols that use Blockchain technology to digitally verify, facilitate, and enforce agreements between two or more parties. This chapter aims to provide a comprehensive and systematic overview of Blockchain-based Smart Contracts and their emerging research fields.