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The Promise, Perils, and Applicability of DeFi

Publisher IDC
Published Jul 19, 2022
Length 20 Pages
SKU # IDC17313141

Description

The Promise, Perils, and Applicability of DeFi

This IDC Perspective provides insight into the inner workings of decentralized finance (DeFi) by exploring its evolution to its current form, market incentives, and structure. The study also highlights the key potentials of DeFi, as well as its associated risks. Through market observations and recent trends, IDC outlines the phases of DeFi adoption in underpinning economic activity, growth areas for financial services and technology vendors, and key action items to ensure innovations in DeFi are shaped to the right direction."With the rise of interest and adoption in the DeFi ecosystem, its risks remain a top priority to be addressed by regulators, developers, and solutions providers alike," says Adam Kamarul, market analyst, IDC Financial Insights. "Ultimately, the speed and diversity of innovations we are seeing across DeFi platforms point toward a shared aspiration for a financial ecosystem that is trust-minimized, transparent, and accessible."

Please Note: Extended description available upon request.

Table of Contents

20 Pages
Executive Snapshot
Situation Overview
What Is DeFi?
The Building Blocks of DeFi: Infrastructure and Mechanisms
Blockchain
Smart Contract
Cryptoassets: Cryptocurrency and Token
DeFi's Current State and Future Trends
Potential of DeFi
Technical Structure
Disintermediating Transactions
Liquidity
Transparency
Programmability and Composability
Sovereignty and Societal Impact
Risks and Perils of DeFi
Economics
Scalability
Security and Vulnerability
Regulation
Barriers to Adoption
Applicability of DeFi to Banking
Applicability of DeFi to Economic Activity
Growth Areas and Adoption Opportunities
Advice for the Technology Buyer
Learn More
Related Research
Synopsis
How Do Licenses Work?
Head shot

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