Banaeian Far, Saeed, Chalak Qazani, Mohamadreza, and Imani Rad, Azadeh (2025) Exploring blockchain-based open finance: The role of advanced cryptographic tools, state-of-the-art achievements, and background challenges. Peer-to-Peer Networking and Applications, 18. 157.

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Abstract

The rapid advancement of financial technologies has catalyzed the evolution of Blockchain-Based Open Finance (BB-OpenFi), an emerging paradigm that integrates the decentralized, trustless nature of Decentralized Finance (DeFi) with the regulatory compliance and structured oversight of Open Finance (OpenFi). This paper explores how advanced cryptographic techniques, including Zero-Knowledge Proofs (ZKPs), Secure Multi-Party Computation (MPC), and Homomorphic Encryption (HE), address critical challenges in security, privacy, scalability, and regulatory compliance in the BB-OpenFi framework. We propose a comprehensive cryptographic framework that ensures confidentiality, integrity, and verifiability in financial transactions, overcoming limitations such as key escrow vulnerabilities, consensus-driven parameter determination, and secret parameter protection. By providing formal cryptographic models, implementation guidelines, and comparative analyses, our findings demonstrate that the BB-OpenFi framework is a highly scalable and secure next-generation financial paradigm. This research not only bridges the gap between traditional finance, OpenFi, and DeFi, but also sets a new standard for trust and efficiency in global financial systems, making it a valuable reference for academia, industry, and regulatory bodies.

Item ID:	86690
Item Type:	Article (Research - C1)
ISSN:	1936-6450
Keywords:	DAO, DeFi, Formal models, Key escrow, Quantum-safe systems, Verifiable computation
Copyright Information:	© The Author(s), under exclusive licence to Springer Science+Business Media, LLC, part of Springer Nature 2025
Research Data:	https://link.springer.com/article/10.1007/s12083-025-01979-w
Date Deposited:	27 Aug 2025 02:31
FoR Codes:	46 INFORMATION AND COMPUTING SCIENCES > 4604 Cybersecurity and privacy > 460401 Cryptography @ 40% 46 INFORMATION AND COMPUTING SCIENCES > 4604 Cybersecurity and privacy > 460403 Data security and protection @ 30% 46 INFORMATION AND COMPUTING SCIENCES > 4604 Cybersecurity and privacy > 460407 System and network security @ 30%
SEO Codes:	28 EXPANDING KNOWLEDGE > 2801 Expanding knowledge > 280108 Expanding knowledge in economics @ 20% 22 INFORMATION AND COMMUNICATION SERVICES > 2204 Information systems, technologies and services > 220405 Cybersecurity @ 50% 22 INFORMATION AND COMMUNICATION SERVICES > 2204 Information systems, technologies and services > 220402 Applied computing @ 30%
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