TY - JOUR
T1 - Blockchain disruption and decentralized finance
T2 - The rise of decentralized business models
AU - Chen, Yan
AU - Bellavitis, Cristiano
N1 - Publisher Copyright:
© 2019 Elsevier Inc.
PY - 2020/6
Y1 - 2020/6
N2 - Blockchain technology can reduce transaction costs, generate distributed trust, and empower decentralized platforms, potentially becoming a new foundation for decentralized business models. In the financial industry, blockchain technology allows for the rise of decentralized financial services, which tend to be more decentralized, innovative, interoperable, borderless, and transparent. Empowered by blockchain technology, decentralized financial services have the potential to broaden financial inclusion, facilitate open access, encourage permissionless innovation, and create new opportunities for entrepreneurs and innovators. In this article, we assess the benefits of decentralized finance, identify existing business models, and evaluate potential challenges and limits. As a new area of financial technology, decentralized finance may reshape the structure of modern finance and create a new landscape for entrepreneurship and innovation, showcasing the promises and challenges of decentralized business models.
AB - Blockchain technology can reduce transaction costs, generate distributed trust, and empower decentralized platforms, potentially becoming a new foundation for decentralized business models. In the financial industry, blockchain technology allows for the rise of decentralized financial services, which tend to be more decentralized, innovative, interoperable, borderless, and transparent. Empowered by blockchain technology, decentralized financial services have the potential to broaden financial inclusion, facilitate open access, encourage permissionless innovation, and create new opportunities for entrepreneurs and innovators. In this article, we assess the benefits of decentralized finance, identify existing business models, and evaluate potential challenges and limits. As a new area of financial technology, decentralized finance may reshape the structure of modern finance and create a new landscape for entrepreneurship and innovation, showcasing the promises and challenges of decentralized business models.
KW - Blockchain
KW - Decentralization
KW - Decentralized finance
KW - Decentralized platform
KW - FinTech
UR - http://www.scopus.com/inward/record.url?scp=85075120827&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85075120827&partnerID=8YFLogxK
U2 - 10.1016/j.jbvi.2019.e00151
DO - 10.1016/j.jbvi.2019.e00151
M3 - Article
AN - SCOPUS:85075120827
VL - 13
JO - Journal of Business Venturing Insights
JF - Journal of Business Venturing Insights
M1 - e00151
ER -