DeFi's transformative influence on the global financial landscape

Title

DeFi's transformative influence on the global financial landscape

Creator

Saravanakrishnan V.; Nandhini M.; Palanivelu P.

Description

The rise of decentralized finance (DeFi) has fundamentally reshaped the financial industry, challenging traditional banking systems and opening up a world of possibilities in global finance. This chapter explores the multifaceted impact of DeFi on the global economic landscape, addressing critical themes through a series of subtitles. DeFi is disrupting traditional banking models by offering alternative financial services directly on blockchain networks, such as lending, borrowing, and trading. One of the remarkable achievements of DeFi is its ability to provide financial services to previously underserved and unbanked populations. Tokenization is a crucial aspect of DeFi, enabling the representation of real-world assets as digital tokens on the blockchain. DeFi offers numerous advantages but poses security challenges, including smart contract vulnerabilities and hacks. This chapter provides an overview of the major themes and implications of DeFi's influence on finance, highlighting its opportunities and challenges. 2024, IGI Global. All rights reserved.

Source

Digital Technologies, Ethics, and Decentralization in the Digital Era, pp. 99-120.

Date

2024-01-01

Publisher

IGI Global

Coverage

Saravanakrishnan V., Christ University, India; Nandhini M., Karpagam Academy of Higher Education, Coimbatore, India; Palanivelu P., Karpagam Academy of Higher Education, Coimbatore, India

Rights

Restricted Access

Relation

ISBN: 979-836931763-1; 979-836931762-4

Format

Online

Language

English

Type

Book chapter

Identifier

https://doi.org/10.4018/979-8-3693-1762-4.ch006

https://www.scopus.com/inward/record.uri?eid=2-s2.0-85189222858&doi=10.4018%2f979-8-3693-1762-4.ch006&partnerID=40&md5=bd399ea18a7d76128ec8ebb69eece4cb