What's holding back blockchain finance? On the possibility of decentralized autonomous finance

【Author】 Harwick, Cameron; Caton, James

【Source】QUARTERLY REVIEW OF ECONOMICS AND FINANCE

【影响因子】4.324

【Abstract】Despite the past decade's rapid innovation in adapting blockchain technology to new uses, financial intermediation remains elusive except in basic and highly collateralized forms. We introduce the concept of the technical frontier to delimit the kinds of interactions that can feasibly be structured algorithmically among pseudonymous agents, as on a blockchain, and show that lending and financial intermediation unlike monetary exchange - lie outside it, even in simple forms. The path forward for truly blockchain-native financial applications, therefore, must involve the integration of real-world identity information in order to disincentivize defection. We discuss several potential technologies for doing so, and conclude that such integration is possible without compromising pseudonymity, provided real-world identity is available in the breach. (C) 2020 Board of Trustees of the University of Illinois. Published by Elsevier Inc. All rights reserved.

【Keywords】Cryptocurrency; Blockchain; Game theory; Financial intermediation

【发表时间】2022 MAY

【收录时间】2022-08-28

【文献类型】观点阐述

【主题类别】

区块链治理-市场治理-市场分析