Global Journal of Computer Science and Technology, D: Neural & Artificial Intelligence, Volume 23 Issue 2

transactions and codes are publicly recorded on the blockchain, enabling easy verification of the contract terms by anyone without the need for a third-party intermediary. This transparency fosters trust and reduces the likelihood of disputes arising from hidden clauses or undisclosed information. • The accuracy of smart contracts is paramount. With precise coding, these contracts execute actions based on predetermined conditions, minimizing the potential for misinterpretation or human error. This precision ensures contractual obligations are fulfilled as intended, reducing the likelihood of disputes or breaches. Smart contracts have diverse and impactful applications across various industries. In financial services, they streamline transactions, automate asset management, and facilitate decentralized finance (DeFi) applications. Supply chain management benefits from smart contracts by enhancing transparency, automating processes, and improving traceability. Real estate transactions become more efficient as smart contracts automate property transfers and manage rental agreements. Voting systems become more secure and transparent with smart contracts, ensuring the integrity of the voting process. In the realm of intellectual property, these contracts help manage copyrights and enforce fair compensation. Gaming industries leverage smart contracts to enable the creation and trade of non- fungible tokens (NFTs) for unique digital assets. healthcare benefits from secure patient record management and automated insurance claims processing. Legal and notary services are streamlined by smart contracts, reducing the need for intermediaries. Additionally, smart contracts empower energy and utilities through peer-to-peer energy trading. Finally, decentralized governance relies on smart contracts for transparent decision making within decentralized autonomous organizations (DAOs). These applications demonstrate the wide-ranging impact of smart contracts in shaping various industries and creating more efficient, transparent, and secure processes. Security breaches can have severe repercussions for the blockchain ecosystem. The immutability of smart contracts means that any vulnerabilities or exploits can lead to significant financial losses for users and investors. Beyond the economic impact, breaches also damage the reputation and trust in blockchain platforms and applications, hindering mainstream adoption. In extreme cases, security breaches can lead to contentious forks or hard forks in the blockchain, dividing the community and generating significant uncertainty. Regulatory scrutiny may increase, leading to potential stifling of innovation. Project failures, negative media coverage, and losses in DeFi and NFT sectors are also possible outcomes. To mitigate such breaches, developers must conduct thorough security audits, adhere to best practices, and employ formal verification tools. Collaboration among blockchain communities is essential to share knowledge and enhance security practices, safeguarding the integrity of the entire blockchain ecosystem. a) Classification of Smart-Contract Vulnerabilities Reentrancy Attack A reentrancy attack represents a security vulnerability that can arise in smart contracts. It takes advantage of the asynchronous execution of smart contract functions, allowing an attacker to repeatedly call a contract function before the previous call finishes its execution. Consequently, this vulnerability can lead to unintended consequences, providing unauthorized access to funds or enabling manipulation of the contract's state. Safeguarding against re-entrancy attacks is essential to ensure the security and integrity of smart contracts and the associated decentralized applications. Simplified bank smart contract is written in Solidity that contains a reentrancy vulnerability. © 2023 Global Journals Global Journal of Computer Science and Technology Volume XXIII Issue II Version I 59 ( )D Year 2023 Strengthening Smart Contracts: An AI-Driven Security Exploration i.