Decentralized trust, centralized fears: Media portrayals and security discourses in the DeFi ecosystem

Abstract

Decentralized Finance (DeFi) aims to offer transparency, autonomy, and trustless transactions via blockchain technology. However, public perception often diverges from these goals, as media coverage tends to focus on data breaches, fraud, and privacy issues. This paper examines the relationship between DeFi’s technical issues, security vulnerabilities, privacy concerns, and monitoring challenges, and how media portrayals influence societal trust. Through analysis of forensic methods, transaction monitoring, and media narratives, the study reveals the conflict between DeFi’s decentralized principles and the centralized fears constructed through discourse. The results provide insights into how public trust in DeFi is influenced, challenged, and reshaped.