# Blockchain/Web3 Development Standards

**Version:** v1.0.0  
**Domain:** blockchain  
**Type:** Technical  
**Risk Level:** HIGH  
**Maturity Level:** Production  
**Author:** MCP Standards Team  
**Created:** 2025-07-07T23:25:53.608556  
**Last Updated:** 2025-07-07T23:25:53.608563  

## Purpose

Comprehensive standards for blockchain and Web3 development, smart contracts, and decentralized applications

This blockchain/Web3 standard defines the requirements, guidelines, and best practices for blockchain/web3 development standards. It provides comprehensive guidance for blockchain development, smart contract security, decentralized application (dApp) architecture, and Web3 ecosystem integration while ensuring security, compliance, and interoperability.

**Blockchain/Web3 Focus Areas:**
- **Smart Contract Security**: Secure smart contract development and auditing
- **Decentralized Architecture**: dApp design patterns and best practices
- **Consensus Mechanisms**: Blockchain consensus and governance protocols
- **Cryptographic Security**: Key management and cryptographic implementations
- **Interoperability**: Cross-chain communication and standards
- **Regulatory Compliance**: Legal and regulatory requirements for blockchain

## Scope

This blockchain/Web3 standard applies to:
- Smart contract development and deployment
- Decentralized application (dApp) development
- Blockchain infrastructure and node operations
- Cryptocurrency and token implementations
- DeFi protocol development
- NFT and digital asset management
- Cross-chain bridge and interoperability solutions
- Web3 wallet and identity management

## Implementation

### Blockchain Requirements

**NIST Controls:** NIST-AC-1, AC-6, AU-2, AU-12, CM-2, CM-8, IA-2, IA-4, RA-3, RA-5, SA-3, SA-8, SC-7, SC-8, SC-12, SC-13, SI-3, SI-4

**Security Standards:** Smart contract security audits and formal verification
**Compliance Frameworks:** Anti-Money Laundering (AML), Know Your Customer (KYC)
**Interoperability:** Cross-chain communication protocols and standards

### Smart Contract Development

#### Smart Contract Architecture
```mermaid
graph TB
    A[User Interface] --> B[Web3 Provider]
    B --> C[Smart Contract Interface]
    C --> D[Core Business Logic]
    D --> E[Access Control]
    D --> F[State Management]
    D --> G[Event Emission]
    
    H[Oracle Services] --> D
    I[External Contracts] --> D
    J[Governance] --> E
    
    K[Audit Tools] --> C
    L[Testing Framework] --> D
```

#### Secure Smart Contract Development
```solidity
// Example: Secure smart contract implementation
// SPDX-License-Identifier: MIT
pragma solidity ^0.8.19;

import "@openzeppelin/contracts/security/ReentrancyGuard.sol";
import "@openzeppelin/contracts/access/AccessControl.sol";
import "@openzeppelin/contracts/security/Pausable.sol";
import "@openzeppelin/contracts/utils/math/SafeMath.sol";

/**
 * @title SecureContract
 * @dev Example of secure smart contract with best practices
 */
contract SecureContract is ReentrancyGuard, AccessControl, Pausable {
    using SafeMath for uint256;
    
    // Role definitions
    bytes32 public constant ADMIN_ROLE = keccak256("ADMIN_ROLE");
    bytes32 public constant OPERATOR_ROLE = keccak256("OPERATOR_ROLE");
    
    // State variables
    mapping(address => uint256) private balances;
    mapping(address => bool) private whitelist;
    
    uint256 public totalSupply;
    uint256 public constant MAX_SUPPLY = 1000000 * 10**18;
    uint256 public constant MIN_TRANSFER = 1000;
    
    // Events
    event Transfer(address indexed from, address indexed to, uint256 amount);
    event Deposit(address indexed user, uint256 amount);
    event Withdrawal(address indexed user, uint256 amount);
    event WhitelistUpdated(address indexed user, bool status);
    
    // Custom errors for gas efficiency
    error InsufficientBalance();
    error InvalidAmount();
    error NotWhitelisted();
    error ExceedsMaxSupply();
    
    constructor() {
        _grantRole(DEFAULT_ADMIN_ROLE, msg.sender);
        _grantRole(ADMIN_ROLE, msg.sender);
    }
    
    /**
     * @dev Deposit funds with security checks
     */
    function deposit() external payable nonReentrant whenNotPaused {
        if (msg.value < MIN_TRANSFER) revert InvalidAmount();
        if (!whitelist[msg.sender]) revert NotWhitelisted();
        
        uint256 newBalance = balances[msg.sender].add(msg.value);
        balances[msg.sender] = newBalance;
        
        emit Deposit(msg.sender, msg.value);
    }
    
    /**
     * @dev Secure withdrawal with checks-effects-interactions pattern
     */
    function withdraw(uint256 amount) external nonReentrant whenNotPaused {
        if (amount == 0) revert InvalidAmount();
        if (balances[msg.sender] < amount) revert InsufficientBalance();
        
        // Effects before interactions
        balances[msg.sender] = balances[msg.sender].sub(amount);
        
        // Interaction
        (bool success, ) = payable(msg.sender).call{value: amount}("");
        require(success, "Transfer failed");
        
        emit Withdrawal(msg.sender, amount);
    }
    
    /**
     * @dev Transfer with additional security checks
     */
    function transfer(address to, uint256 amount) external nonReentrant whenNotPaused {
        if (to == address(0)) revert InvalidAmount();
        if (amount == 0) revert InvalidAmount();
        if (balances[msg.sender] < amount) revert InsufficientBalance();
        if (!whitelist[msg.sender] || !whitelist[to]) revert NotWhitelisted();
        
        balances[msg.sender] = balances[msg.sender].sub(amount);
        balances[to] = balances[to].add(amount);
        
        emit Transfer(msg.sender, to, amount);
    }
    
    /**
     * @dev Admin function to update whitelist
     */
    function updateWhitelist(address user, bool status) 
        external 
        onlyRole(ADMIN_ROLE) 
    {
        whitelist[user] = status;
        emit WhitelistUpdated(user, status);
    }
    
    /**
     * @dev Emergency pause function
     */
    function pause() external onlyRole(ADMIN_ROLE) {
        _pause();
    }
    
    /**
     * @dev Unpause function
     */
    function unpause() external onlyRole(ADMIN_ROLE) {
        _unpause();
    }
    
    /**
     * @dev Get balance (view function)
     */
    function balanceOf(address account) external view returns (uint256) {
        return balances[account];
    }
    
    /**
     * @dev Check if address is whitelisted
     */
    function isWhitelisted(address account) external view returns (bool) {
        return whitelist[account];
    }
}
```

#### Smart Contract Testing
```javascript
// Example: Comprehensive smart contract testing
const { expect } = require("chai");
const { ethers } = require("hardhat");
const { loadFixture } = require("@nomicfoundation/hardhat-network-helpers");

describe("SecureContract", function () {
    async function deploySecureContractFixture() {
        const [owner, user1, user2, attacker] = await ethers.getSigners();
        
        const SecureContract = await ethers.getContractFactory("SecureContract");
        const contract = await SecureContract.deploy();
        
        return { contract, owner, user1, user2, attacker };
    }
    
    describe("Deployment", function () {
        it("Should set the right owner", async function () {
            const { contract, owner } = await loadFixture(deploySecureContractFixture);
            
            expect(await contract.hasRole(await contract.ADMIN_ROLE(), owner.address))
                .to.equal(true);
        });
    });
    
    describe("Security Tests", function () {
        it("Should prevent reentrancy attacks", async function () {
            const { contract, user1 } = await loadFixture(deploySecureContractFixture);
            
            // Deploy malicious contract that attempts reentrancy
            const MaliciousContract = await ethers.getContractFactory("MaliciousReentrant");
            const malicious = await MaliciousContract.deploy(contract.address);
            
            // Whitelist the malicious contract
            await contract.updateWhitelist(malicious.address, true);
            
            // Attempt reentrancy attack
            await expect(
                malicious.attack({ value: ethers.utils.parseEther("1") })
            ).to.be.revertedWith("ReentrancyGuard: reentrant call");
        });
        
        it("Should prevent integer overflow/underflow", async function () {
            const { contract, user1 } = await loadFixture(deploySecureContractFixture);
            
            await contract.updateWhitelist(user1.address, true);
            
            // Try to withdraw more than balance
            await expect(
                contract.connect(user1).withdraw(ethers.utils.parseEther("1"))
            ).to.be.revertedWith("InsufficientBalance");
        });
        
        it("Should enforce access controls", async function () {
            const { contract, user1 } = await loadFixture(deploySecureContractFixture);
            
            // Non-admin should not be able to update whitelist
            await expect(
                contract.connect(user1).updateWhitelist(user1.address, true)
            ).to.be.revertedWith("AccessControl:");
        });
        
        it("Should handle emergency pause correctly", async function () {
            const { contract, owner, user1 } = await loadFixture(deploySecureContractFixture);
            
            await contract.updateWhitelist(user1.address, true);
            
            // Pause the contract
            await contract.pause();
            
            // Operations should be blocked
            await expect(
                contract.connect(user1).deposit({ value: ethers.utils.parseEther("1") })
            ).to.be.revertedWith("Pausable: paused");
        });
    });
    
    describe("Gas Optimization Tests", function () {
        it("Should use custom errors for gas efficiency", async function () {
            const { contract, user1 } = await loadFixture(deploySecureContractFixture);
            
            // Test custom error
            await expect(
                contract.connect(user1).deposit({ value: 100 })
            ).to.be.revertedWith("NotWhitelisted");
        });
    });
});
```

### DeFi Protocol Development

#### DeFi Architecture Patterns
```solidity
// Example: DeFi lending protocol
// SPDX-License-Identifier: MIT
pragma solidity ^0.8.19;

import "@openzeppelin/contracts/token/ERC20/IERC20.sol";
import "@openzeppelin/contracts/security/ReentrancyGuard.sol";
import "@openzeppelin/contracts/access/Ownable.sol";

/**
 * @title LendingPool
 * @dev Simplified DeFi lending pool implementation
 */
contract LendingPool is ReentrancyGuard, Ownable {
    struct LoanTerms {
        uint256 principal;
        uint256 interestRate;
        uint256 duration;
        uint256 startTime;
        address borrower;
        address collateralToken;
        uint256 collateralAmount;
        bool active;
    }
    
    IERC20 public immutable lendingToken;
    uint256 public constant COLLATERAL_RATIO = 150; // 150% collateralization
    uint256 public constant LIQUIDATION_THRESHOLD = 120; // 120%
    
    mapping(address => uint256) public deposits;
    mapping(uint256 => LoanTerms) public loans;
    mapping(address => uint256[]) public userLoans;
    
    uint256 private nextLoanId = 1;
    uint256 public totalDeposits;
    uint256 public totalBorrowed;
    
    event Deposited(address indexed user, uint256 amount);
    event Withdrawn(address indexed user, uint256 amount);
    event LoanCreated(uint256 indexed loanId, address indexed borrower, uint256 amount);
    event LoanRepaid(uint256 indexed loanId, uint256 amount);
    event Liquidated(uint256 indexed loanId, address indexed liquidator);
    
    constructor(address _lendingToken) {
        lendingToken = IERC20(_lendingToken);
    }
    
    function deposit(uint256 amount) external nonReentrant {
        require(amount > 0, "Amount must be greater than 0");
        
        lendingToken.transferFrom(msg.sender, address(this), amount);
        deposits[msg.sender] += amount;
        totalDeposits += amount;
        
        emit Deposited(msg.sender, amount);
    }
    
    function withdraw(uint256 amount) external nonReentrant {
        require(deposits[msg.sender] >= amount, "Insufficient balance");
        require(getAvailableLiquidity() >= amount, "Insufficient liquidity");
        
        deposits[msg.sender] -= amount;
        totalDeposits -= amount;
        
        lendingToken.transfer(msg.sender, amount);
        
        emit Withdrawn(msg.sender, amount);
    }
    
    function borrow(
        uint256 amount,
        address collateralToken,
        uint256 collateralAmount,
        uint256 duration
    ) external nonReentrant {
        require(amount > 0, "Amount must be greater than 0");
        require(duration > 0, "Duration must be greater than 0");
        require(getAvailableLiquidity() >= amount, "Insufficient liquidity");
        
        // Check collateral ratio
        uint256 requiredCollateral = (amount * COLLATERAL_RATIO) / 100;
        require(collateralAmount >= requiredCollateral, "Insufficient collateral");
        
        // Transfer collateral
        IERC20(collateralToken).transferFrom(msg.sender, address(this), collateralAmount);
        
        // Create loan
        uint256 loanId = nextLoanId++;
        loans[loanId] = LoanTerms({
            principal: amount,
            interestRate: calculateInterestRate(amount),
            duration: duration,
            startTime: block.timestamp,
            borrower: msg.sender,
            collateralToken: collateralToken,
            collateralAmount: collateralAmount,
            active: true
        });
        
        userLoans[msg.sender].push(loanId);
        totalBorrowed += amount;
        
        // Transfer loan amount
        lendingToken.transfer(msg.sender, amount);
        
        emit LoanCreated(loanId, msg.sender, amount);
    }
    
    function repayLoan(uint256 loanId) external nonReentrant {
        LoanTerms storage loan = loans[loanId];
        require(loan.active, "Loan not active");
        require(loan.borrower == msg.sender, "Not loan borrower");
        
        uint256 repayAmount = calculateRepayAmount(loanId);
        
        // Transfer repayment
        lendingToken.transferFrom(msg.sender, address(this), repayAmount);
        
        // Return collateral
        IERC20(loan.collateralToken).transfer(msg.sender, loan.collateralAmount);
        
        // Update state
        loan.active = false;
        totalBorrowed -= loan.principal;
        
        emit LoanRepaid(loanId, repayAmount);
    }
    
    function liquidate(uint256 loanId) external nonReentrant {
        LoanTerms storage loan = loans[loanId];
        require(loan.active, "Loan not active");
        require(isLiquidatable(loanId), "Loan not liquidatable");
        
        uint256 repayAmount = calculateRepayAmount(loanId);
        
        // Liquidator pays the debt
        lendingToken.transferFrom(msg.sender, address(this), repayAmount);
        
        // Liquidator receives collateral (with penalty)
        uint256 liquidationBonus = (loan.collateralAmount * 5) / 100; // 5% bonus
        IERC20(loan.collateralToken).transfer(msg.sender, loan.collateralAmount + liquidationBonus);
        
        // Update state
        loan.active = false;
        totalBorrowed -= loan.principal;
        
        emit Liquidated(loanId, msg.sender);
    }
    
    function calculateInterestRate(uint256 amount) public view returns (uint256) {
        // Simple utilization-based interest rate model
        uint256 utilization = (totalBorrowed * 100) / totalDeposits;
        return 5 + (utilization / 10); // Base 5% + utilization factor
    }
    
    function calculateRepayAmount(uint256 loanId) public view returns (uint256) {
        LoanTerms memory loan = loans[loanId];
        uint256 timeElapsed = block.timestamp - loan.startTime;
        uint256 interest = (loan.principal * loan.interestRate * timeElapsed) / (365 days * 100);
        return loan.principal + interest;
    }
    
    function isLiquidatable(uint256 loanId) public view returns (bool) {
        LoanTerms memory loan = loans[loanId];
        if (!loan.active) return false;
        
        uint256 repayAmount = calculateRepayAmount(loanId);
        uint256 collateralValue = getCollateralValue(loan.collateralToken, loan.collateralAmount);
        uint256 collateralRatio = (collateralValue * 100) / repayAmount;
        
        return collateralRatio < LIQUIDATION_THRESHOLD;
    }
    
    function getAvailableLiquidity() public view returns (uint256) {
        return lendingToken.balanceOf(address(this)) - totalBorrowed;
    }
    
    function getCollateralValue(address token, uint256 amount) public view returns (uint256) {
        // Simplified: assume 1:1 with lending token
        // In practice, would use price oracle
        return amount;
    }
}
```

### Cross-Chain Infrastructure

#### Cross-Chain Bridge Architecture
```solidity
// Example: Cross-chain bridge implementation
// SPDX-License-Identifier: MIT
pragma solidity ^0.8.19;

import "@openzeppelin/contracts/token/ERC20/IERC20.sol";
import "@openzeppelin/contracts/security/ReentrancyGuard.sol";
import "@openzeppelin/contracts/access/AccessControl.sol";

/**
 * @title CrossChainBridge
 * @dev Secure cross-chain asset bridge
 */
contract CrossChainBridge is ReentrancyGuard, AccessControl {
    bytes32 public constant VALIDATOR_ROLE = keccak256("VALIDATOR_ROLE");
    bytes32 public constant ADMIN_ROLE = keccak256("ADMIN_ROLE");
    
    struct BridgeTransaction {
        address token;
        uint256 amount;
        address sender;
        address recipient;
        uint256 targetChainId;
        uint256 nonce;
        bool processed;
        uint256 timestamp;
    }
    
    mapping(uint256 => BridgeTransaction) public bridgeTransactions;
    mapping(bytes32 => bool) public processedHashes;
    mapping(address => bool) public supportedTokens;
    mapping(uint256 => bool) public supportedChains;
    
    uint256 public nextNonce = 1;
    uint256 public constant CONFIRMATION_THRESHOLD = 3;
    
    event BridgeInitiated(
        uint256 indexed nonce,
        address indexed token,
        uint256 amount,
        address indexed sender,
        address recipient,
        uint256 targetChainId
    );
    
    event BridgeCompleted(
        uint256 indexed nonce,
        bytes32 indexed transactionHash
    );
    
    constructor() {
        _grantRole(DEFAULT_ADMIN_ROLE, msg.sender);
        _grantRole(ADMIN_ROLE, msg.sender);
    }
    
    function initiateBridge(
        address token,
        uint256 amount,
        address recipient,
        uint256 targetChainId
    ) external nonReentrant {
        require(supportedTokens[token], "Token not supported");
        require(supportedChains[targetChainId], "Chain not supported");
        require(amount > 0, "Amount must be greater than 0");
        require(recipient != address(0), "Invalid recipient");
        
        // Lock tokens
        IERC20(token).transferFrom(msg.sender, address(this), amount);
        
        // Create bridge transaction
        uint256 nonce = nextNonce++;
        bridgeTransactions[nonce] = BridgeTransaction({
            token: token,
            amount: amount,
            sender: msg.sender,
            recipient: recipient,
            targetChainId: targetChainId,
            nonce: nonce,
            processed: false,
            timestamp: block.timestamp
        });
        
        emit BridgeInitiated(nonce, token, amount, msg.sender, recipient, targetChainId);
    }
    
    function completeBridge(
        uint256 nonce,
        bytes32 transactionHash,
        bytes[] calldata signatures
    ) external onlyRole(VALIDATOR_ROLE) {
        require(!processedHashes[transactionHash], "Transaction already processed");
        require(signatures.length >= CONFIRMATION_THRESHOLD, "Insufficient confirmations");
        
        BridgeTransaction storage transaction = bridgeTransactions[nonce];
        require(!transaction.processed, "Transaction already processed");
        
        // Verify signatures (simplified)
        require(verifySignatures(transactionHash, signatures), "Invalid signatures");
        
        // Mark as processed
        transaction.processed = true;
        processedHashes[transactionHash] = true;
        
        // Release tokens
        IERC20(transaction.token).transfer(transaction.recipient, transaction.amount);
        
        emit BridgeCompleted(nonce, transactionHash);
    }
    
    function verifySignatures(
        bytes32 hash,
        bytes[] calldata signatures
    ) internal pure returns (bool) {
        // Simplified signature verification
        // In practice, would verify against known validator set
        return signatures.length >= 3;
    }
    
    function addSupportedToken(address token) external onlyRole(ADMIN_ROLE) {
        supportedTokens[token] = true;
    }
    
    function addSupportedChain(uint256 chainId) external onlyRole(ADMIN_ROLE) {
        supportedChains[chainId] = true;
    }
}
```

### NFT and Digital Asset Management

#### NFT Standard Implementation
```solidity
// Example: Advanced NFT implementation with royalties
// SPDX-License-Identifier: MIT
pragma solidity ^0.8.19;

import "@openzeppelin/contracts/token/ERC721/ERC721.sol";
import "@openzeppelin/contracts/token/ERC721/extensions/ERC721URIStorage.sol";
import "@openzeppelin/contracts/access/Ownable.sol";
import "@openzeppelin/contracts/security/ReentrancyGuard.sol";
import "@openzeppelin/contracts/interfaces/IERC2981.sol";

/**
 * @title AdvancedNFT
 * @dev NFT contract with royalties, metadata, and marketplace integration
 */
contract AdvancedNFT is ERC721, ERC721URIStorage, Ownable, ReentrancyGuard, IERC2981 {
    struct RoyaltyInfo {
        address recipient;
        uint256 percentage; // Basis points (e.g., 500 = 5%)
    }
    
    mapping(uint256 => RoyaltyInfo) private _royalties;
    mapping(uint256 => address) public creators;
    mapping(address => bool) public authorizedMinters;
    
    uint256 public nextTokenId = 1;
    uint256 public constant MAX_ROYALTY = 1000; // 10%
    string private _baseTokenURI;
    
    event NFTMinted(uint256 indexed tokenId, address indexed creator, address indexed to);
    event RoyaltySet(uint256 indexed tokenId, address recipient, uint256 percentage);
    
    constructor(
        string memory name,
        string memory symbol,
        string memory baseTokenURI
    ) ERC721(name, symbol) {
        _baseTokenURI = baseTokenURI;
    }
    
    function mint(
        address to,
        string memory tokenURI,
        address royaltyRecipient,
        uint256 royaltyPercentage
    ) external returns (uint256) {
        require(authorizedMinters[msg.sender] || msg.sender == owner(), "Not authorized to mint");
        require(royaltyPercentage <= MAX_ROYALTY, "Royalty too high");
        
        uint256 tokenId = nextTokenId++;
        
        _safeMint(to, tokenId);
        _setTokenURI(tokenId, tokenURI);
        
        creators[tokenId] = msg.sender;
        
        if (royaltyRecipient != address(0) && royaltyPercentage > 0) {
            _setRoyalty(tokenId, royaltyRecipient, royaltyPercentage);
        }
        
        emit NFTMinted(tokenId, msg.sender, to);
        
        return tokenId;
    }
    
    function _setRoyalty(
        uint256 tokenId,
        address recipient,
        uint256 percentage
    ) internal {
        require(percentage <= MAX_ROYALTY, "Royalty too high");
        
        _royalties[tokenId] = RoyaltyInfo(recipient, percentage);
        
        emit RoyaltySet(tokenId, recipient, percentage);
    }
    
    function royaltyInfo(uint256 tokenId, uint256 salePrice)
        external
        view
        override
        returns (address, uint256)
    {
        RoyaltyInfo memory royalty = _royalties[tokenId];
        
        if (royalty.recipient == address(0)) {
            return (address(0), 0);
        }
        
        uint256 royaltyAmount = (salePrice * royalty.percentage) / 10000;
        return (royalty.recipient, royaltyAmount);
    }
    
    function updateRoyalty(
        uint256 tokenId,
        address newRecipient,
        uint256 newPercentage
    ) external {
        require(_exists(tokenId), "Token does not exist");
        require(
            creators[tokenId] == msg.sender || msg.sender == owner(),
            "Not authorized"
        );
        
        _setRoyalty(tokenId, newRecipient, newPercentage);
    }
    
    function setAuthorizedMinter(address minter, bool authorized) external onlyOwner {
        authorizedMinters[minter] = authorized;
    }
    
    function setBaseURI(string memory newBaseURI) external onlyOwner {
        _baseTokenURI = newBaseURI;
    }
    
    function _baseURI() internal view override returns (string memory) {
        return _baseTokenURI;
    }
    
    function tokenURI(uint256 tokenId)
        public
        view
        override(ERC721, ERC721URIStorage)
        returns (string memory)
    {
        return super.tokenURI(tokenId);
    }
    
    function _burn(uint256 tokenId) internal override(ERC721, ERC721URIStorage) {
        super._burn(tokenId);
        delete _royalties[tokenId];
        delete creators[tokenId];
    }
    
    function supportsInterface(bytes4 interfaceId)
        public
        view
        override(ERC721, IERC165)
        returns (bool)
    {
        return interfaceId == type(IERC2981).interfaceId || super.supportsInterface(interfaceId);
    }
}
```

### Web3 Integration and dApp Development

#### Web3 Frontend Integration
```javascript
// Example: Web3 dApp frontend integration
import { ethers } from 'ethers';
import { useState, useEffect, useCallback } from 'react';

// Contract ABI (simplified)
const CONTRACT_ABI = [
    "function deposit() payable",
    "function withdraw(uint256 amount)",
    "function balanceOf(address account) view returns (uint256)",
    "function transfer(address to, uint256 amount)",
    "event Transfer(address indexed from, address indexed to, uint256 amount)"
];

const CONTRACT_ADDRESS = "0x..."; // Your contract address

export function useWeb3Contract() {
    const [provider, setProvider] = useState(null);
    const [signer, setSigner] = useState(null);
    const [contract, setContract] = useState(null);
    const [account, setAccount] = useState(null);
    const [balance, setBalance] = useState('0');
    const [isConnected, setIsConnected] = useState(false);

    // Connect to wallet
    const connectWallet = useCallback(async () => {
        try {
            if (window.ethereum) {
                const web3Provider = new ethers.providers.Web3Provider(window.ethereum);
                const accounts = await web3Provider.send("eth_requestAccounts", []);
                
                const web3Signer = web3Provider.getSigner();
                const contractInstance = new ethers.Contract(
                    CONTRACT_ADDRESS,
                    CONTRACT_ABI,
                    web3Signer
                );

                setProvider(web3Provider);
                setSigner(web3Signer);
                setContract(contractInstance);
                setAccount(accounts[0]);
                setIsConnected(true);

                // Get initial balance
                const userBalance = await contractInstance.balanceOf(accounts[0]);
                setBalance(ethers.utils.formatEther(userBalance));

            } else {
                alert('Please install MetaMask!');
            }
        } catch (error) {
            console.error('Error connecting wallet:', error);
        }
    }, []);

    // Disconnect wallet
    const disconnectWallet = useCallback(() => {
        setProvider(null);
        setSigner(null);
        setContract(null);
        setAccount(null);
        setBalance('0');
        setIsConnected(false);
    }, []);

    // Deposit function
    const deposit = useCallback(async (amount) => {
        try {
            if (!contract) throw new Error('Contract not connected');

            const tx = await contract.deposit({
                value: ethers.utils.parseEther(amount)
            });

            // Wait for transaction confirmation
            const receipt = await tx.wait();
            
            // Update balance
            const newBalance = await contract.balanceOf(account);
            setBalance(ethers.utils.formatEther(newBalance));

            return receipt;
        } catch (error) {
            console.error('Deposit error:', error);
            throw error;
        }
    }, [contract, account]);

    // Withdraw function
    const withdraw = useCallback(async (amount) => {
        try {
            if (!contract) throw new Error('Contract not connected');

            const tx = await contract.withdraw(ethers.utils.parseEther(amount));
            
            // Wait for transaction confirmation
            const receipt = await tx.wait();
            
            // Update balance
            const newBalance = await contract.balanceOf(account);
            setBalance(ethers.utils.formatEther(newBalance));

            return receipt;
        } catch (error) {
            console.error('Withdraw error:', error);
            throw error;
        }
    }, [contract, account]);

    // Transfer function
    const transfer = useCallback(async (to, amount) => {
        try {
            if (!contract) throw new Error('Contract not connected');

            const tx = await contract.transfer(to, ethers.utils.parseEther(amount));
            
            // Wait for transaction confirmation
            const receipt = await tx.wait();
            
            // Update balance
            const newBalance = await contract.balanceOf(account);
            setBalance(ethers.utils.formatEther(newBalance));

            return receipt;
        } catch (error) {
            console.error('Transfer error:', error);
            throw error;
        }
    }, [contract, account]);

    // Listen for events
    useEffect(() => {
        if (contract && account) {
            const filter = contract.filters.Transfer(account, null);
            
            contract.on(filter, (from, to, amount, event) => {
                console.log('Transfer event:', {
                    from,
                    to,
                    amount: ethers.utils.formatEther(amount),
                    txHash: event.transactionHash
                });
                
                // Update balance on transfer events
                contract.balanceOf(account).then(newBalance => {
                    setBalance(ethers.utils.formatEther(newBalance));
                });
            });

            return () => {
                contract.removeAllListeners(filter);
            };
        }
    }, [contract, account]);

    // Check if wallet is already connected
    useEffect(() => {
        const checkConnection = async () => {
            if (window.ethereum) {
                const web3Provider = new ethers.providers.Web3Provider(window.ethereum);
                const accounts = await web3Provider.listAccounts();
                
                if (accounts.length > 0) {
                    await connectWallet();
                }
            }
        };

        checkConnection();
    }, [connectWallet]);

    return {
        provider,
        signer,
        contract,
        account,
        balance,
        isConnected,
        connectWallet,
        disconnectWallet,
        deposit,
        withdraw,
        transfer
    };
}

// Example React component using the hook
export function DAppInterface() {
    const {
        account,
        balance,
        isConnected,
        connectWallet,
        disconnectWallet,
        deposit,
        withdraw,
        transfer
    } = useWeb3Contract();

    const [depositAmount, setDepositAmount] = useState('');
    const [withdrawAmount, setWithdrawAmount] = useState('');
    const [transferTo, setTransferTo] = useState('');
    const [transferAmount, setTransferAmount] = useState('');
    const [loading, setLoading] = useState(false);

    const handleDeposit = async () => {
        setLoading(true);
        try {
            await deposit(depositAmount);
            setDepositAmount('');
            alert('Deposit successful!');
        } catch (error) {
            alert('Deposit failed: ' + error.message);
        } finally {
            setLoading(false);
        }
    };

    const handleWithdraw = async () => {
        setLoading(true);
        try {
            await withdraw(withdrawAmount);
            setWithdrawAmount('');
            alert('Withdrawal successful!');
        } catch (error) {
            alert('Withdrawal failed: ' + error.message);
        } finally {
            setLoading(false);
        }
    };

    const handleTransfer = async () => {
        setLoading(true);
        try {
            await transfer(transferTo, transferAmount);
            setTransferTo('');
            setTransferAmount('');
            alert('Transfer successful!');
        } catch (error) {
            alert('Transfer failed: ' + error.message);
        } finally {
            setLoading(false);
        }
    };

    return (
        <div className="dapp-interface">
            <h1>Secure DApp Interface</h1>
            
            {!isConnected ? (
                <button onClick={connectWallet}>Connect Wallet</button>
            ) : (
                <div>
                    <div className="wallet-info">
                        <p>Account: {account}</p>
                        <p>Balance: {balance} ETH</p>
                        <button onClick={disconnectWallet}>Disconnect</button>
                    </div>

                    <div className="deposit-section">
                        <h3>Deposit</h3>
                        <input
                            type="number"
                            value={depositAmount}
                            onChange={(e) => setDepositAmount(e.target.value)}
                            placeholder="Amount to deposit"
                            disabled={loading}
                        />
                        <button onClick={handleDeposit} disabled={loading || !depositAmount}>
                            Deposit
                        </button>
                    </div>

                    <div className="withdraw-section">
                        <h3>Withdraw</h3>
                        <input
                            type="number"
                            value={withdrawAmount}
                            onChange={(e) => setWithdrawAmount(e.target.value)}
                            placeholder="Amount to withdraw"
                            disabled={loading}
                        />
                        <button onClick={handleWithdraw} disabled={loading || !withdrawAmount}>
                            Withdraw
                        </button>
                    </div>

                    <div className="transfer-section">
                        <h3>Transfer</h3>
                        <input
                            type="text"
                            value={transferTo}
                            onChange={(e) => setTransferTo(e.target.value)}
                            placeholder="Recipient address"
                            disabled={loading}
                        />
                        <input
                            type="number"
                            value={transferAmount}
                            onChange={(e) => setTransferAmount(e.target.value)}
                            placeholder="Amount to transfer"
                            disabled={loading}
                        />
                        <button 
                            onClick={handleTransfer} 
                            disabled={loading || !transferTo || !transferAmount}
                        >
                            Transfer
                        </button>
                    </div>
                </div>
            )}
        </div>
    );
}
```

### Blockchain Security and Auditing

#### Security Audit Checklist
```yaml
# Blockchain Security Audit Checklist
security_audit:
  smart_contract_vulnerabilities:
    - check: "Reentrancy attacks"
      description: "Verify reentrancy guards are in place"
      severity: "Critical"
      
    - check: "Integer overflow/underflow"
      description: "Use SafeMath or Solidity 0.8+ built-in checks"
      severity: "High"
      
    - check: "Access control issues"
      description: "Verify proper role-based access control"
      severity: "High"
      
    - check: "Front-running protection"
      description: "Implement commit-reveal or similar mechanisms"
      severity: "Medium"
      
    - check: "Gas limit issues"
      description: "Avoid unbounded loops and gas limit dependencies"
      severity: "Medium"

  defi_specific_checks:
    - check: "Price oracle manipulation"
      description: "Use multiple oracle sources and time-weighted averages"
      severity: "Critical"
      
    - check: "Flash loan attacks"
      description: "Implement proper flash loan protection mechanisms"
      severity: "Critical"
      
    - check: "Liquidity pool manipulation"
      description: "Verify pool manipulation resistance"
      severity: "High"

  governance_security:
    - check: "Governance token distribution"
      description: "Verify fair and secure token distribution"
      severity: "High"
      
    - check: "Proposal validation"
      description: "Implement proper proposal validation and timelock"
      severity: "Medium"
```

#### Automated Security Testing
```javascript
// Example: Automated security testing with Hardhat
const { expect } = require("chai");
const { ethers } = require("hardhat");

describe("Security Tests", function () {
    let contract, owner, attacker;

    beforeEach(async function () {
        [owner, attacker] = await ethers.getSigners();
        
        const Contract = await ethers.getContractFactory("SecureContract");
        contract = await Contract.deploy();
    });

    describe("Reentrancy Protection", function () {
        it("Should prevent reentrancy attacks", async function () {
            // Deploy malicious contract
            const Malicious = await ethers.getContractFactory("MaliciousReentrant");
            const malicious = await Malicious.deploy(contract.address);
            
            // Attempt reentrancy
            await expect(
                malicious.attack({ value: ethers.utils.parseEther("1") })
            ).to.be.revertedWith("ReentrancyGuard: reentrant call");
        });
    });

    describe("Access Control", function () {
        it("Should enforce admin-only functions", async function () {
            await expect(
                contract.connect(attacker).adminFunction()
            ).to.be.revertedWith("AccessControl:");
        });
    });

    describe("Input Validation", function () {
        it("Should validate input parameters", async function () {
            await expect(
                contract.someFunction(0)
            ).to.be.revertedWith("Invalid amount");
        });
    });

    describe("Gas Optimization", function () {
        it("Should use gas-efficient patterns", async function () {
            const tx = await contract.efficientFunction();
            const receipt = await tx.wait();
            
            // Check gas usage is within acceptable limits
            expect(receipt.gasUsed).to.be.below(100000);
        });
    });
});
```

## Compliance

### Regulatory Requirements

- **AML/KYC**: Compliance with AML/KYC requirements
- **MiCA**: Compliance with MiCA requirements
- **GDPR**: Compliance with GDPR requirements
- **SOX**: Compliance with SOX requirements
- **PCI DSS**: Compliance with PCI DSS requirements

### Risk Management

- **Risk Level**: High Impact
- **Risk Assessment**: Regular risk assessments required
- **Mitigation Strategies**: Implement appropriate controls

### Audit Requirements

- Regular compliance audits
- Documentation review
- Control effectiveness testing

## Monitoring and Measurement

### Blockchain/Web3 Monitoring

#### Blockchain Network Monitoring
```javascript
// Example: Blockchain monitoring system
class BlockchainMonitor {
    constructor(providerUrl, contractAddresses) {
        this.provider = new ethers.providers.JsonRpcProvider(providerUrl);
        this.contracts = {};
        this.metrics = {};
        
        // Initialize contract instances
        contractAddresses.forEach(({ address, abi, name }) => {
            this.contracts[name] = new ethers.Contract(address, abi, this.provider);
        });
    }

    async monitorBlockchainHealth() {
        try {
            // Check network connectivity
            const blockNumber = await this.provider.getBlockNumber();
            const gasPrice = await this.provider.getGasPrice();
            const network = await this.provider.getNetwork();

            this.metrics.network = {
                blockNumber,
                gasPrice: ethers.utils.formatUnits(gasPrice, 'gwei'),
                chainId: network.chainId,
                lastUpdated: new Date().toISOString()
            };

            return this.metrics.network;
        } catch (error) {
            console.error('Blockchain health check failed:', error);
            throw error;
        }
    }

    async monitorContractState(contractName) {
        try {
            const contract = this.contracts[contractName];
            if (!contract) {
                throw new Error(`Contract ${contractName} not found`);
            }

            // Monitor contract metrics
            const metrics = {
                contractAddress: contract.address,
                blockNumber: await this.provider.getBlockNumber(),
                contractBalance: await this.provider.getBalance(contract.address),
                lastUpdated: new Date().toISOString()
            };

            // Add contract-specific metrics
            if (contract.totalSupply) {
                metrics.totalSupply = await contract.totalSupply();
            }

            this.metrics.contracts = this.metrics.contracts || {};
            this.metrics.contracts[contractName] = metrics;

            return metrics;
        } catch (error) {
            console.error(`Contract monitoring failed for ${contractName}:`, error);
            throw error;
        }
    }

    async monitorTransactionPool() {
        try {
            // Monitor pending transactions
            const pendingBlock = await this.provider.send('eth_getBlockByNumber', ['pending', false]);
            
            const poolMetrics = {
                pendingTransactions: pendingBlock.transactions.length,
                gasPrice: await this.provider.getGasPrice(),
                lastUpdated: new Date().toISOString()
            };

            this.metrics.transactionPool = poolMetrics;
            return poolMetrics;
        } catch (error) {
            console.error('Transaction pool monitoring failed:', error);
            throw error;
        }
    }

    async monitorEvents(contractName, eventName, fromBlock = 'latest') {
        try {
            const contract = this.contracts[contractName];
            if (!contract) {
                throw new Error(`Contract ${contractName} not found`);
            }

            const filter = contract.filters[eventName]();
            const events = await contract.queryFilter(filter, fromBlock);

            const eventMetrics = {
                contractName,
                eventName,
                eventCount: events.length,
                events: events.slice(-10), // Last 10 events
                lastUpdated: new Date().toISOString()
            };

            this.metrics.events = this.metrics.events || {};
            this.metrics.events[`${contractName}_${eventName}`] = eventMetrics;

            return eventMetrics;
        } catch (error) {
            console.error(`Event monitoring failed for ${contractName}.${eventName}:`, error);
            throw error;
        }
    }

    startRealTimeMonitoring(intervalMs = 30000) {
        setInterval(async () => {
            try {
                await this.monitorBlockchainHealth();
                
                // Monitor all registered contracts
                for (const contractName of Object.keys(this.contracts)) {
                    await this.monitorContractState(contractName);
                }

                await this.monitorTransactionPool();
                
                console.log('Monitoring update:', this.metrics);
            } catch (error) {
                console.error('Real-time monitoring error:', error);
            }
        }, intervalMs);
    }

    getMetrics() {
        return this.metrics;
    }
}

// Usage example
const monitor = new BlockchainMonitor('https://mainnet.infura.io/v3/YOUR_PROJECT_ID', [
    {
        name: 'LendingPool',
        address: '0x...',
        abi: LENDING_POOL_ABI
    }
]);

// Start monitoring
monitor.startRealTimeMonitoring(30000); // Every 30 seconds
```

#### DeFi Protocol Health Monitoring
```javascript
// Example: DeFi protocol health monitoring
class DeFiProtocolMonitor {
    constructor(protocolContracts) {
        this.contracts = protocolContracts;
        this.healthMetrics = {};
        this.alerts = [];
    }

    async checkLiquidityPoolHealth(poolAddress) {
        try {
            const pool = this.contracts.pools[poolAddress];
            
            const metrics = {
                totalLiquidity: await pool.getTotalLiquidity(),
                utilizationRate: await pool.getUtilizationRate(),
                averageAPY: await pool.getAverageAPY(),
                totalBorrowed: await pool.getTotalBorrowed(),
                availableLiquidity: await pool.getAvailableLiquidity()
            };

            // Check for potential issues
            if (metrics.utilizationRate > 90) {
                this.alerts.push({
                    type: 'HIGH_UTILIZATION',
                    pool: poolAddress,
                    utilizationRate: metrics.utilizationRate,
                    timestamp: new Date().toISOString()
                });
            }

            if (metrics.availableLiquidity < ethers.utils.parseEther("1000")) {
                this.alerts.push({
                    type: 'LOW_LIQUIDITY',
                    pool: poolAddress,
                    availableLiquidity: metrics.availableLiquidity,
                    timestamp: new Date().toISOString()
                });
            }

            return metrics;
        } catch (error) {
            console.error(`Pool health check failed for ${poolAddress}:`, error);
            throw error;
        }
    }

    async checkOracleHealth(oracleAddress) {
        try {
            const oracle = this.contracts.oracles[oracleAddress];
            
            const metrics = {
                lastUpdate: await oracle.getLastUpdateTime(),
                priceDeviation: await this.calculatePriceDeviation(oracle),
                isStale: await this.checkIfStale(oracle),
                heartbeat: await oracle.getHeartbeat()
            };

            // Check for oracle issues
            if (metrics.isStale) {
                this.alerts.push({
                    type: 'STALE_ORACLE',
                    oracle: oracleAddress,
                    lastUpdate: metrics.lastUpdate,
                    timestamp: new Date().toISOString()
                });
            }

            if (metrics.priceDeviation > 5) { // 5% deviation threshold
                this.alerts.push({
                    type: 'PRICE_DEVIATION',
                    oracle: oracleAddress,
                    deviation: metrics.priceDeviation,
                    timestamp: new Date().toISOString()
                });
            }

            return metrics;
        } catch (error) {
            console.error(`Oracle health check failed for ${oracleAddress}:`, error);
            throw error;
        }
    }

    async generateHealthReport() {
        const report = {
            timestamp: new Date().toISOString(),
            pools: {},
            oracles: {},
            alerts: this.alerts,
            overallHealth: 'HEALTHY'
        };

        // Check all pools
        for (const poolAddress of Object.keys(this.contracts.pools)) {
            report.pools[poolAddress] = await this.checkLiquidityPoolHealth(poolAddress);
        }

        // Check all oracles
        for (const oracleAddress of Object.keys(this.contracts.oracles)) {
            report.oracles[oracleAddress] = await this.checkOracleHealth(oracleAddress);
        }

        // Determine overall health
        if (this.alerts.length > 0) {
            const criticalAlerts = this.alerts.filter(alert => 
                ['STALE_ORACLE', 'LOW_LIQUIDITY'].includes(alert.type)
            );
            
            if (criticalAlerts.length > 0) {
                report.overallHealth = 'CRITICAL';
            } else {
                report.overallHealth = 'WARNING';
            }
        }

        return report;
    }
}
```

## Responsibilities

### Standard Owner
- Maintain standard documentation
- Approve changes and updates
- Ensure compliance monitoring

### Implementation Teams
- Follow standard requirements
- Report compliance issues
- Maintain documentation

### Audit Teams
- Conduct compliance reviews
- Validate implementation
- Report findings and recommendations

## References

### Blockchain/Web3 References

#### Smart Contract Development
- **Solidity**: Official Solidity documentation
- **OpenZeppelin**: Secure smart contract library
- **Hardhat**: Development environment for Ethereum
- **Truffle**: Development framework for Ethereum
- **Remix**: Online IDE for smart contract development

#### Security and Auditing
- **ConsenSys Smart Contract Best Practices**
- **OWASP Smart Contract Top 10**
- **SWC Registry**: Smart Contract Weakness Classification
- **MythX**: Smart contract security analysis platform
- **Slither**: Static analysis framework for Solidity

#### DeFi Protocols
- **Uniswap**: Decentralized exchange protocol
- **Compound**: Lending and borrowing protocol
- **Aave**: Decentralized lending platform
- **MakerDAO**: Decentralized autonomous organization

#### Cross-Chain and Interoperability
- **Polkadot**: Multi-chain protocol
- **Cosmos**: Interchain ecosystem
- **LayerZero**: Omnichain interoperability protocol
- **Chainlink CCIP**: Cross-Chain Interoperability Protocol

#### NFT and Digital Assets
- **ERC-721**: Non-Fungible Token Standard
- **ERC-1155**: Multi-Token Standard
- **EIP-2981**: NFT Royalty Standard
- **OpenSea**: NFT marketplace API

#### Web3 Development
- **Ethers.js**: Ethereum library for JavaScript
- **Web3.js**: Ethereum JavaScript API
- **WalletConnect**: Protocol for connecting wallets to dApps
- **MetaMask**: Browser extension wallet

#### Regulatory and Compliance
- **AML/KYC Requirements**: Anti-Money Laundering compliance
- **Securities Regulations**: Token classification guidelines
- **GDPR Compliance**: Data protection in blockchain
- **MiCA Regulation**: European crypto-asset regulation

## Appendix

### Glossary

**Standard**: A documented agreement containing technical specifications or criteria to be used consistently.

**Compliance**: The act of conforming to rules, regulations, or standards.

**Risk**: The potential for loss, damage, or destruction of an asset as a result of a threat.

### Change History

| Version | Date | Changes | Author |
|---------|------|---------|---------|
| 1.0.0 | 2025-07-07T23:25:53.608563 | Initial version | MCP Standards Team |

### Review and Approval

- **Review Status**: Draft
- **Reviewers**: 
- **Approval Date**: Pending

---

*This document is part of the blockchain standards framework and is subject to regular review and updates.*