Open AccessDecentralized Finance & Accounting – Implications, Considerations, and Opportunities for Development
Author(s) -
Sean Stein Smith
Publication year - 2021
Publication title -
the international journal of digital accounting research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 13
eISSN - 2340-5058
pISSN - 1577-8517
DOI - 10.4192/1577-8517-v21_5
Subject(s) - mainstream , blockchain , financial services , service (business) , business , finance , accounting , computer science , marketing , political science , computer security , law
The blockchain and cryptoasset sector, since coming to the attention of the mainstream business and financial markets during the bitcoin bull run of 2017, continues to accelerate and evolve rapidly. Decentralized finance (DeFi), a new iteration of what was previously referred to as open finance, has emerged as an innovative use case and service enabled by blockchain technology. As with any innovation or new tool, however, there remains a range of questions and considerations that will have to be addressed prior to wider adoption and utilization. This research attempts to contextualize the development of DeFi, frame it within the blockchain and cryptoasset sector, and explain potential obstacles and challenges to further development. Subsequent to this examination of DeFi trends, challenges, and opportunities, a potential framework for further development and implementation will be presented. Outlined and written in a manner approachable to both practitioners and academic users, this research should be used a springboard for further discussion, analysis, and progress.