Quantum-Enhanced Optimization of Smart Contract Execution for Automated Financial Services

Abstract

Decentralized finance (DeFi) uses smart contracts to automate payments, lending, and asset management, but current blockchains often suffer from slow, expensive, and energy-hungry execution. In this project, I explore a quantum-enhanced optimization framework for smart contract–based financial services. The main idea is to treat gas use, transaction ordering, and resource allocation as optimization problems that can be tackled by hybrid quantum–classical algorithms. Using a conceptual model, I map smart contract execution to cost functions suitable for the Quantum Approximate Optimization Algorithm (QAOA) and the Variational Quantum Eigensolver (VQE). I then compare, at a qualitative level, how these quantum-inspired approaches differ from classical heuristics in terms of expected throughput, latency, and cost. A focused literature review on quantum computing, blockchain scalability, and quantum-safe cryptography provides context for these ideas. The results suggest that quantum-enhanced optimization could reduce gas fees, improve transaction scheduling, and support more efficient consensus under heavy load. The project also discusses the need for post-quantum security so that future quantum computers do not undermine blockchain trust. Overall, the work outlines how quantum computing might contribute to faster, safer, and more sustainable automated financial systems.