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The Taxonomy of Blockchain-based Technology in the Financial Industry
Andry Alamsyah1, Syahputra Syahrir1
1School of Economics and Business, Telkom University, Bandung, West Java, Indonesia.
Blockchain and decentralized finance (DeFi) are revolutionizing industries by increasing transparency and innovation. This study outlines DeFi advancements, benefits, and emerging threats, offering solutions for a more secure financial future.
Area of Science:
- Blockchain Technology
- Financial Innovation
- Decentralized Finance (DeFi)
Background:
- The financial sector faces disruption from the rise of decentralized finance (DeFi).
- Blockchain technology offers decentralization, enhancing transparency and removing intermediaries in business processes.
- This innovation spurs product development and improves operational efficiency across industries.
Purpose of the Study:
- To outline the advancements in decentralized finance (DeFi) driven by blockchain technology.
- To categorize these advancements through a structured literature review.
- To identify key drivers, products, benefits, and emerging threats within the DeFi landscape.
Main Methods:
- A comprehensive literature review was conducted.
- A taxonomy was developed to categorize DeFi advancements.
- The review focused on identifying key drivers, products, benefits, and threats.
Main Results:
- A four-dimensional taxonomy of DeFi advancements was created: key drivers, products, benefits, and emerging threats.
- Decentralization enhances business processes and product innovation.
- Increased transparency and disintermediation are core benefits.
Conclusions:
- Decentralized finance presents significant opportunities and challenges.
- Understanding the key dimensions of DeFi is crucial for navigating its evolution.
- Proposed solutions are available to mitigate emerging threats in the DeFi space.
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