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Blockchain and Decentralized Finance: A Systematic Review of the Transformation of Financial Services

Author

Listed:
  • Diana Marleny Ramirez-Ramirez
  • Alejandro Valencia-Arias
  • Jackeline Valencia
  • Sebastian Cardona-Acevedo
  • Maria Camila Bermeo-Giraldo

Abstract

Blockchain technology and decentralised finance (DeFi) are reshaping financial services by eliminating intermediaries, automating transactions through smart contracts, and expanding global access to capital. Initially designed for cryptocurrencies, blockchain has evolved into a transformative ecosystem that optimises resource management and democratises finance. This study explores the impact of blockchain and DeFi on financial services, focusing on adoption opportunities and challenges. It addresses key gaps in the literature, particularly platform interoperability, security in decentralised environments, and adoption in emerging markets. Using the PRISMA 2020 methodology, the research ensures a rigorous selection and critical evaluation of scientific articles to identify trends, barriers, and potential developments. Findings indicate that blockchain and DeFi can enhance financial inclusion, improve transparency, and strengthen decentralisation. However, they also present challenges such as regulatory uncertainty, technical complexity, and security risks. Overcoming these obstacles requires innovative solutions and strategic collaboration among governments, financial institutions, and technology developers. By shedding light on these dynamics, the study contributes to a deeper understanding of how blockchain and DeFi can reshape financial services, paving the way for a more inclusive, efficient, and secure financial ecosystem.

Suggested Citation

  • Diana Marleny Ramirez-Ramirez & Alejandro Valencia-Arias & Jackeline Valencia & Sebastian Cardona-Acevedo & Maria Camila Bermeo-Giraldo, 2026. "Blockchain and Decentralized Finance: A Systematic Review of the Transformation of Financial Services," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 1, pages 233-255, March.
    • Handle: RePEc:nwe:eajour:y:2026:i:1:p:233-255
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    File URL: https://www.unwe.bg/doi/eajournal/2026.1/EA.2026.1.11.pdf
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    References listed on IDEAS

    as
    1. Fabian Schär, 2021. "Decentralized Finance: On Blockchain- and Smart Contract-Based Financial Markets," Review, Federal Reserve Bank of St. Louis, vol. 103(2), pages 153-174, April.
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    More about this item

    Keywords

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    JEL classification:

    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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