Application Classifications of Decentralized Finance and the Development Strategies

Abstract

Decentralized finance is a decentralized network based on smart contracts of blockchain technology and specific decentralized applications (DAPPS). It not only can enhance users' information privacy and transaction equity, but also has incomparable advantages in protecting asset security, reducing financial cost and de-trust. The opportunities of decentralized financial development include: Solving the problem of information asymmetry in traditional financial transactions; Providing safe and convenient asset management and inclusive finance; Promoting the formation of broader global financial services. In order to better promote decentralized finance development, we need to actively follow and embrace its progress trend; Establish "weakly centralized" structure based on Consortium Blockchain; Strengthen international coordination and cooperation of RMB; Improve the regulatory systems and relevant laws and regulations.