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Decentralized Finance (Defi) – The Lego Of Finance

Author

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  • Andrei-Dragos Popescu

    (SCX Holdings)

Abstract

Blockchain Technology can enhance the basic services that are essential in traditional finance and it has the potential to become the foundation for decentralized business models, empowering entrepreneurs and innovators with all the right tools. By means of a trustless and distributed infrastructure, blockchain technology is optimizing transactional costs and allows the rise of decentralized, innovative, interoperable, borderless and transparent applications which facilitate open access and encourage permissionless innovations. DeFi stands for "Decentralized Finance" and refers to the ecosystem comprised of financial applications that are being developed on top of blockchain and distributed ledger systems. The Decentralized Finance (DeFi) or Open Finance movement takes that promise a step further. Imagine a global, open alternative to every financial service you use today - savings, loans, trading, insurance and many others - accessible to anyone in the world only by means of a smartphone and internet connection.

Suggested Citation

  • Andrei-Dragos Popescu, 2020. "Decentralized Finance (Defi) – The Lego Of Finance," Social Sciences and Education Research Review, Department of Communication, Journalism and Education Sciences, University of Craiova, vol. 7(1), pages 321-348, July.
    • Handle: RePEc:edt:jsserr:v:7:y:2020:i:1:p:321-348
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    References listed on IDEAS

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    1. Chen, Yan & Bellavitis, Cristiano, 2020. "Blockchain disruption and decentralized finance: The rise of decentralized business models," Journal of Business Venturing Insights, Elsevier, vol. 13(C).
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    Cited by:

    1. Florentina c{S}oiman & Guillaume Dumas & Sonia Jimenez-Garces, 2022. "The return of (I)DeFiX," Papers 2204.00251, arXiv.org.
    2. Florentina Șoiman & Jean-Guillaume Dumas & Sonia Jimenez-Garces, 2022. "The return of (I)DeFiX [Le rendement de (I)DeFiX]," Working Papers hal-03625891, HAL.
    3. Şoiman, Florentina & Dumas, Jean-Guillaume & Jimenez-Garces, Sonia, 2023. "What drives DeFi market returns?," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 85(C).
    4. Puschmann, Thomas & Huang-Sui, Marine, 2024. "A taxonomy for decentralized finance," International Review of Financial Analysis, Elsevier, vol. 92(C).

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    • Z0 - Other Special Topics - - General

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