DECENTRALIZED FINANCE AS A FINANCIAL ECOSYSTEM BASED ON BLOCKCHAIN TECHNOLOGY

Abstract

The complex interplay between the field of decentralized finance (DeFi) and the established realm of traditional banking presents a fascinating tale of convergence, divergence, and potential collaboration. This article takes a comprehensive look at the multifaceted interactions between these two financial landscapes to explore whether they are destined to merge or whether their collision is inevitable. Decentralized finance, or DeFi, represents a paradigm shift in the financial sector. Based on blockchain technology and smart contracts, DeFi platforms offer innovative solutions for lending, borrowing, trading and more. Meanwhile, traditional banking, with its long-standing institutional foundation, served as the cornerstone of financial services. However, the emergence of DeFi has challenged established norms, questioning the need for intermediaries and centralization.