
The Promise, Perils, and Applicability of DeFi
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.
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
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