Decentralized Finance : Blockchain Technology and the Quest for an Open Financial System

Blockchain technology can reduce transaction costs, facilitate decentralized platforms, and produce distributed trust, creating a foundation for new business models. In the financial industry, blockchain technology allows for the rise of decentralized financial services that may be more decentralized, innovative, interoperable, borderless, and transparent. Decentralized financial services have the potential to reduce transaction costs, broaden financial inclusion, facilitate open access, encourage permissionless innovation, and create new opportunities for entrepreneurs and innovators. In this article, we assess the benefits of decentralized finance, identify existing business models, and evaluate potential challenges and limits. As a new area of financial technology, decentralized finance may reshape the structure of modern finance and create a new landscape for entrepreneurship and innovation, showcasing the potential of decentralization as a foundation for new business models