Work

Revolutionizing Finance: Decentralized Finance as a Disruptive Challenge to Traditional Finance

Year: 2024

Type: article

Abstract: This paper examines the emergence and impact of Decentralized Finance (DeFi), between 2019 and 2024, as a disruptive agent opposing traditional finance (TradFi). By using blockchain technology to offer decentralized, open, and readily available financial services, the DeFi industry has seen explosive expansion Emphasizing DeFi's competitive advantage over TradFi, this study aims to investigate notable trends, developments, and market drivers in the toolkit. The main conclusions are the fast and significant rise in Total Value Locked (TVL), the clear increase in user adoption, the expansion in the number of transactions and trading volume on decentralized exchanges (DEXs), and the development of creative financial products. DeFi constantly changes the financial scene despite regulatory oversight and market volatility, so posing major problems and opportunities for established financial institutions.

Source: Theoretical and Practical Research in Economic Fields

DOI: 10.14505/tpref.v15.3(31).02

Author: Rajmund MIRDALA

Institution: Technical University of Košice

Language: English

Topic: Blockchain Technology Applications and Security

Subfield: Information Systems

Field: Computer Science

Domain: Physical Sciences

Open Access status: hybrid

OpenAlex ID: W4402974447

FWCI: 3.097

Cites:

Cited by: 8

Related to: 10