DeFi-ning DeFi: Challenges & Pathway

【Author】 Amler, Hendrik; Eckey, Lisa; Faust, Sebastian; Kaiser, Marcel; Sandner, Philipp; Schlosser, Benjamin

【Source】2021 3RD CONFERENCE ON BLOCKCHAIN RESEARCH & APPLICATIONS FOR INNOVATIVE NETWORKS AND SERVICES (BRAINS)

【影响因子】

【Abstract】The decentralized and trustless nature of cryptocurrencies and blockchain technology leads to a shift in the digital world. The possibility to execute small programs, called smart contracts, on cryptocurrencies like Ethereum opened doors to countless new applications. One particular exciting use case is decentralized finance (DeFi), which aims to revolutionize traditional financial services by founding them on a decentralized infrastructure. We show the potential of DeFi by analyzing its advantages compared to traditional finance. Additionally, we survey the state-of-the-art of DeFi products and categorize existing services. Since DeFi is still in its infancy, there are countless hurdles for mass adoption. We discuss the most prominent challenges and point out possible solutions. Finally, we analyze the economics behind DeFi products. By carefully analyzing the state-of-the-art and discussing current challenges, we give a perspective on how the DeFi space might develop in the near future.

【Keywords】blockchain; finance; contracts; distributed ledgers

【发表时间】2021

【收录时间】2022-09-15

【文献类型】综述

【主题类别】

区块链应用-虚拟经济-DeFi