Decentralised finance, its prospects and limits: Is blockchain interoperability the only obstacle?

Alexis Derviz

A chapter in CNB Global Economic Outlook - July 2021, 2021, pp 13-17 from Czech National Bank, Research and Statistics Department

Abstract: Decentralised finance (DeFi) refers to financial products and services that operate on permissionless blockchains in the cyberspace independently of official legal and regulatory institutions and in disregard of state borders. Since a blockchain was originally meant to be the exclusive operational domain of its user community, facilitating inter-blockchain interaction is the immediate question to be resolved if one wants to make DeFi a meaningful global alternative to traditional finance. In the process of answering this question, one discovers challenges to DeFi deployment that extend well beyond pure technological interoperability.

Date: 2021
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