Version 1
: Received: 10 February 2024 / Approved: 13 February 2024 / Online: 13 February 2024 (12:09:33 CET)
How to cite:
Ahmed, A.A.A. The Rise of DeFi: Transforming Traditional Finance with Blockchain Innovation. Preprints2024, 2024020738. https://doi.org/10.20944/preprints202402.0738.v1
Ahmed, A.A.A. The Rise of DeFi: Transforming Traditional Finance with Blockchain Innovation. Preprints 2024, 2024020738. https://doi.org/10.20944/preprints202402.0738.v1
Ahmed, A.A.A. The Rise of DeFi: Transforming Traditional Finance with Blockchain Innovation. Preprints2024, 2024020738. https://doi.org/10.20944/preprints202402.0738.v1
APA Style
Ahmed, A.A.A. (2024). <strong>The Rise of DeFi: Transforming Traditional Finance with Blockchain Innovation</strong>. Preprints. https://doi.org/10.20944/preprints202402.0738.v1
Chicago/Turabian Style
Ahmed, A.A.A. 2024 "<strong>The Rise of DeFi: Transforming Traditional Finance with Blockchain Innovation</strong>" Preprints. https://doi.org/10.20944/preprints202402.0738.v1
Abstract
The emergence of decentralized finance (DeFi) signifies a fundamental change in the financial sector, utilizing blockchain technology to revolutionize conventional financial structures. This study aims to investigate the development, underlying principles, and practical applications of DeFi while analyzing the regulatory factors, upcoming patterns, and policy consequences. This study employs a thorough research methodology encompassing a literature review and case studies to examine the fundamental elements, uses, and instances of success in DeFi. It emphasizes the potential for transformation and the obstacles it faces. The study identified legal ambiguity, difficulties in achieving scale, and constraints related to compliance as primary concerns for policymakers. The fundamental discoveries encompass the pivotal function of blockchain technology in facilitating DeFi platforms, the tangible implementations of DeFi in lending, borrowing, and trading, and the necessity for clear regulations and global cooperation. The policy implications encompass the significance of maintaining a balance between innovation and compliance, promoting international collaboration, and prioritizing consumer protection measures. In summary, this study enhances our comprehension of the emergence of DeFi and its consequences for conventional finance. It offers valuable insights for policymakers, industry participants, and scholars in effectively navigating the changing realm of decentralized finance.
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
