DECENTRALIZED FINANCE (DEFI) – THE LEGO OF FINANCE
DECENTRALIZED FINANCE (DEFI) – THE LEGO OF FINANCE

Summary/Abstract: Blockchain Technology can enhance the basic services that are essential in traditional finance and it has the potential to become the foundation for decentralized business models, empowering entrepreneurs and innovators with all the right tools. By means of a trustless and distributed infrastructure, blockchain technology is optimizing transactional costs and allows the rise of decentralized, innovative, interoperable, borderless and transparent applications which facilitate open access and encourage permissionless innovations. DeFi stands for “Decentralized Finance” and refers to the ecosystem comprised of financial applications that are being developed on top of blockchain and distributed ledger systems. The Decentralized Finance (DeFi) or Open Finance movement takes that promise a step further. Imagine a global, open alternative to every financial service you use today - savings, loans, trading, insurance and many others - accessible to anyone in the world only by means of a smartphone and internet connection. DeFi is the movement that leverages decentralized networks and open source software to create or transform old financial products into trustworthy and transparent protocols that run without intermediaries. This article will analyze several studies and researches on Decentralized Finance with focus on its features and subsets, intending to offer a synthesis on how the ecosystem is evolving and the way it may reshape the structure of modern finance by creating a new landscape for innovation.

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