Blockchain technology has emerged as one of the most transformative innovations in the financial sector, enabling secure, transparent, and decentralized transaction systems. Among its key applications, smart contracts have gained significant attention for automating financial agreements and reducing the need for intermediaries. Smart contracts are self-executing digital agreements embedded within blockchain networks that automatically enforce contractual terms when predefined conditions are met. The present study examines the role of blockchain-based smart contracts in financial transactions and evaluates their impact on efficiency, transparency, security, and cost reduction in financial systems. The study is based on secondary data collected from industry reports, academic publications, and financial technology databases. Analytical methods including descriptive analysis and regression-based conceptual modeling are used to examine the relationship between smart contract adoption and financial transaction efficiency. The findings indicate that smart contracts significantly enhance transaction speed, reduce operational costs, minimize fraud risk, and improve transparency in financial systems. The study concludes that blockchain-based smart contracts have the potential to transform financial transactions by improving efficiency, reliability, and trust in digital financial ecosystems.
Imran Baig Mirza (Wed,) studied this question.