Subject. This article discusses the concept of decentralized finance (DeFi), an alternative to the traditional financial infrastructure and built on the Ethereum platform. Objectives. The article aims to consider the features and problematic aspects of decentralized finance (services, applications, protocols, smart contracts, token standards), develop a predictive scenario for the development of DeFi in the world, and prove the prospects for the implementation of a decentralized finance infrastructure. Methods. For the study, we used the methods of observation, systematization, data classification, and generalization. Results. The article describes the advantages and potential risks of implementing a decentralized finance infrastructure and focuses on the prospects of DeFi in the context of the development of the global world economy. Conclusions. The article emphasizes the need to promptly solve urgent problems for the practical implementation of DeFi, including ensuring the proper level of operational security.
Keywords: decentralized finance, open
References:
Ye Guo, Chen Liang. Blockchain Application and Outlook in the Banking Industry. Financial Innovation, 2016, vol. 2, article 24, pp. 120–127. URL: Link
Casino F., Dasaklis T.K., Patsakis C. A Systematic Literature Review of Blockchain-Based Applications: Current Status, Classification and Open Issues. Telematics and Informatics, 2019, iss. 36, pp. 55–81. URL: Link
Kumar P., Shrivastava G., Tanwar P. Demistifying Ethereum Technology: Application and Benefits of Decentralization. In: K. Sharma, M. Makino, G. Shrivastava, & B. Agarwal (Eds), Forensic Investigations and Risk Management in Mobile and Wireless Communications. Hershey, PA, IGI Global, 2020, pp. 242–256. URL: Link
Yan Chen, Bellavitis C. Blockchain Disruption and Decentralized Finance: The Rise of Decentralized Business Models. Journal of Business Venturing Insights, 2020, vol. 13. URL: Link
Minhaj Uddin Chowdhury, Khairunnahar Suchana, Syed Md Eftekhar Alam, Mohammad Monirujjaman Khan. Blockchain Application in Banking System. Journal of Software Engineering and Applications, 2021, vol. 14, iss. 7, pp. 120–127. URL: Link
Schär F. Decentralized Finance: On Blockchain- and Smart Contract-Based Financial Markets. Economic Research Federal Reserve Bank of St. Louis, 2021, vol. 103, no. 2. URL: Link
Hargrave J., Sahdev N.K., Feldmeier O. How Value is Created in Tokenized Assets., 2018. URL: Link
Roth J., Schär F., Schöpfer А. The Tokenization of Assets: Using Blockchains for Equity Crowdfunding. 2019. URL: Link
Zmaznev Е. Measuring Decentralised Finance: Regulatory Uncertainty. Norwegian School of Economics, 2021, 43 p. URL: Link
Chang V., Baudier P., Zhang H. et al. How Blockchain Can Impact Financial Services – The Overview, Challenges and Recommendations from Expert Interviewees. Technological Forecasting and Social Change, 2020, vol. 158. URL: Link
Khalil M., Khawaja K.F., Sarfraz M. The Adoption of Blockchain Technology in the Financial Sector During the Era of Fourth Industrial Revolution: A Moderated Mediated Model. Quality & Quantity, 2021. URL: Link
Rensi Li, Yinglin Wan. Analysis of the Negative Relationship between Blockchain Application and Corporate Performance. Mobile Information Systems, 2021, vol. 2021, article ID 9912241, 18 p. URL: Link
Maphuti Tuba, Chinelle van der Westhuizen. An Analysis of the ‘Know Your Customer’ Policy as an Effective Tool to Combat Money Laundering: Is it about Who or What to Know that Counts? International Journal of Public Law and Policy, 2014, vol. 4, iss. 1, pp. 53–70. URL: Link
Junyao Wang, Shenling Wang, Junqi Guo et al. A Summary of Research on Blockchain in the Field of Intellectual Property. Procedia Computer Science, 2019, vol. 147, pp. 191–197. URL: Link
Buitenhek M. Understanding and Applying Blockchain Technology in Banking: Evolution or Revolution? Journal of Digital Banking, 2016, vol. 1, iss. 2, pp. 111–119. URL: Link
