A Study on Formal Verification of Smart Contracts in Distributed Ledger Technology

This study paper explores the critical topic of formal verification of smart contracts in distributed ledger technology (DLT) systems. Smart contracts, self-executing code running on blockchain platforms, have gained widespread adoption in various industries due to their automation and transparency benefits. However, the decentralized and immutable nature of DLT raises concerns regarding smart contract security, leading to vulnerabilities and potential exploits. Formal verification methods offer a systematic approach to analyze smart contracts for correctness and safety. This paper provides an overview of smart contracts, DLT, and the importance of formal verification. It reviews various formal verification techniques and presents state-of-the-art tools and frameworks. The paper concludes with discussions on challenges, future research opportunities, and the role of formal verification in enhancing DLT-based applications' security and usability.

I. Introduction

Smart contracts [4] in Distributed Ledger Technology (DLT) are self-executing packages that mechanically execute predefined actions whilst specific situations are met. These smart contracts are deployed on a disbursed ledger or blockchain platform [1] [2], which guarantees decentralization, immutability, and transparency. Smart contracts dispose of the want for intermediaries and permit for trustless and automatic transactions, making them a foundational thing of various decentralized packages (DApps) and blockchain ecosystems. Some of the important thing traits of Smart Contracts in DLT are:- Autonomy: Smart contracts operate autonomously as soon as deployed and do not require any outside intervention to execute their predefined good judgment. Decentralization: They run on a decentralized network of nodes (computers), which ensures that no unmarried entity has manage over the entire device, enhancing security and putting off single factors of failure. Transparency: Smart contracts are obvious, meaning that the code and execution consequences are visible to all individuals at the blockchain network. Immutability: Once deployed at the blockchain, smart contracts come to be immutable, meaning their code cannot be altered or tampered with, making sure a dependable and stable execution surroundings. Trust less Execution: Parties worried in clever contract transactions need no longer accept as true with every different explicitly. Instead, they believe the underlying blockchain's consensus mechanism and the code's integrity[5]. Cost Efficiency: By removing intermediaries and automating strategies, clever contracts lessen transaction expenses and increase performance in various industries.