The term decentralized finance DeFi refers to an alternative financial infrastructure built on top of the Ethereum blockchain. DeFi uses smart contracts to create protocols that replicate existing financial services in a more open, interoperable, and transparent way. This paper highlights opportunities and potential risks of the DeFi ecosystem. I propose a multi layered framework to analyze the implicit architecture and the various DeFi building blocks, including token standards, decentralized exchanges, decentralized debt markets, blockchain derivatives, and on chain asset management protocols. I conclude that DeFi still is a niche market with certain risks but that it also has interesting properties in terms of efficiency, transparency, accessibility, and compos ability. As such, DeFi may potentially contribute to a more robust and transparent financial infrastructure. Jagjeet Jena | Harsh Singh Chauhan "Decentralized Finance: On Blockchain and Smart Contract-Based Financial Markets" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Special Issue | International Conference on Advances in Engineering, Science and Technology - 2021 , May 2021, URL: https://www.ijtsrd.com/papers/ijtsrd42463.pdf Paper URL : https://www.ijtsrd.com/engineering/computer-engineering/42463/decentralized-finance-on-blockchain-and-smart-contractbased-financial-markets/jagjeet-jena
International Journal of Trend in Scientific Research and Development (IJTSRD)
Special Issue: International Conference on Advances in Engineering, Science and Technology – 2021
Organized by: Uttaranchal Institute of Technology, Uttaranchal University, Dehradun
Available Online: www.ijtsrd.com e-ISSN: 2456 – 6470
@ IJTSRD | Unique Paper ID – IJTSRD42463 | ICAEST-21 | May 2021
Page 42
Decentralized Finance: On Blockchain and
Smart Contract-Based Financial Markets
Jagjeet Jena, Harsh Singh Chauhan
UIT, Uttaranchal University, Dehradun, Uttarakhand, India
ABSTRACT
The term decentralized finance (DeFi) refers to an alternative financial
infrastructure built on top of the Ethereum blockchain. DeFi uses smart
contracts to create protocols that replicate existing financial services in a more
open, interoperable, and transparent way. This paper highlights opportunities
and potential risks of the DeFi ecosystem. I propose a multi-layered
framework to analyze the implicit architecture and the various DeFi building
blocks, including token standards, decentralized exchanges, decentralized debt
markets, blockchain derivatives, and on-chain asset management protocols. I
conclude that DeFi still is a niche market with certain risks but that it also has
interesting properties in terms of efficiency, transparency, accessibility, and
compos ability. As such, DeFi may potentially contribute to a more robust and
transparent financial infrastructure.
How to cite this paper: Jagjeet Jena |
Harsh Singh Chauhan "Decentralized
Finance: On Blockchain and Smart
Contract-Based
Financial
Markets"
Published in International Journal of
Trend
in Scientific Research and
Development (ijtsrd),
ISSN:
2456-6470,
Special
Issue
|
International
Conference
on
Advances
in
Engineering, Science
and Technology –
2021, May 2021, pp.42-54, URL:
www.ijtsrd.com/papers/ijtsrd42463.pdf
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International Journal