Decentralized finance
Research background: Its simplest form, decentralized finance is a system by which financial products become available on a public decentralized blockchain network, making them open to anyone to use, rather than going through middlemen like banks or brokerages. Unlike a bank or brokerage account, a...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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EDP Sciences
2021-01-01
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| Series: | SHS Web of Conferences |
| Subjects: | |
| Online Access: | https://www.shs-conferences.org/articles/shsconf/pdf/2021/40/shsconf_glob2021_03008.pdf |
| _version_ | 1798014672202366976 |
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| author | Frajtova Michalikova Katarina Poliakova Adela |
| author_facet | Frajtova Michalikova Katarina Poliakova Adela |
| author_sort | Frajtova Michalikova Katarina |
| collection | DOAJ |
| description | Research background: Its simplest form, decentralized finance is a system by which financial products become available on a public decentralized blockchain network, making them open to anyone to use, rather than going through middlemen like banks or brokerages. Unlike a bank or brokerage account, a government-issued ID, Social Security number, or proof of address are not necessary to use DeFi.
Purpose of the article: The aim of the contribution is more specifically, DeFi refers to a system by which software written on blockchains makes it possible for buyers, sellers, lenders, and borrowers to interact peer to peer or with a strictly software-based middleman rather than a company or institution facilitating a transaction.
Methods: Multiple technologies and protocols are used to achieve the goal of decentralization. For example, a decentralized system can consist of a mix of open-source technologies, blockchain, and proprietary software. Smart contracts that automate agreement terms between buyers and sellers or lenders and borrowers make these financial products possible. Regardless of the technology or platform used, DeFi systems are designed to remove intermediaries between transacting parties.
Findings & Value added: The article provides an overview of decentralized finance (DeFi) solutions that have already proved they are better alternatives to traditional finance. With DeFi, users can take advantage of lower transaction rates, higher interest rates or an opportunity to diversify investments. |
| first_indexed | 2024-04-11T15:22:10Z |
| format | Article |
| id | doaj.art-17823b21b50340618e29cc133de1c47e |
| institution | Directory Open Access Journal |
| issn | 2261-2424 |
| language | English |
| last_indexed | 2024-04-11T15:22:10Z |
| publishDate | 2021-01-01 |
| publisher | EDP Sciences |
| record_format | Article |
| series | SHS Web of Conferences |
| spelling | doaj.art-17823b21b50340618e29cc133de1c47e2022-12-22T04:16:21ZengEDP SciencesSHS Web of Conferences2261-24242021-01-011290300810.1051/shsconf/202112903008shsconf_glob2021_03008Decentralized financeFrajtova Michalikova Katarina0Poliakova Adela1University of Zilina, Faculty of Operation and Economics of Transport and Communications, Department of EconomicsUniversity of Zilina, Faculty of Operation and Economics of Transport and Communications, Department of EconomicsResearch background: Its simplest form, decentralized finance is a system by which financial products become available on a public decentralized blockchain network, making them open to anyone to use, rather than going through middlemen like banks or brokerages. Unlike a bank or brokerage account, a government-issued ID, Social Security number, or proof of address are not necessary to use DeFi. Purpose of the article: The aim of the contribution is more specifically, DeFi refers to a system by which software written on blockchains makes it possible for buyers, sellers, lenders, and borrowers to interact peer to peer or with a strictly software-based middleman rather than a company or institution facilitating a transaction. Methods: Multiple technologies and protocols are used to achieve the goal of decentralization. For example, a decentralized system can consist of a mix of open-source technologies, blockchain, and proprietary software. Smart contracts that automate agreement terms between buyers and sellers or lenders and borrowers make these financial products possible. Regardless of the technology or platform used, DeFi systems are designed to remove intermediaries between transacting parties. Findings & Value added: The article provides an overview of decentralized finance (DeFi) solutions that have already proved they are better alternatives to traditional finance. With DeFi, users can take advantage of lower transaction rates, higher interest rates or an opportunity to diversify investments.https://www.shs-conferences.org/articles/shsconf/pdf/2021/40/shsconf_glob2021_03008.pdfdecentralized finance;financial products;blockchain;globalization |
| spellingShingle | Frajtova Michalikova Katarina Poliakova Adela Decentralized finance SHS Web of Conferences decentralized finance; financial products; blockchain; globalization |
| title | Decentralized finance |
| title_full | Decentralized finance |
| title_fullStr | Decentralized finance |
| title_full_unstemmed | Decentralized finance |
| title_short | Decentralized finance |
| title_sort | decentralized finance |
| topic | decentralized finance; financial products; blockchain; globalization |
| url | https://www.shs-conferences.org/articles/shsconf/pdf/2021/40/shsconf_glob2021_03008.pdf |
| work_keys_str_mv | AT frajtovamichalikovakatarina decentralizedfinance AT poliakovaadela decentralizedfinance |