Blockchain Disruption and Decentralized Finance: The Rise of Decentralized Business Models

Journal of Business Venturing Insights, Forthcoming

Stevens Institute of Technology School of Business Research Paper

22 Pages Posted: 19 Nov 2019

See all articles by Yan Chen

Yan Chen

Stevens Institute of Technology - School of Business

Cristiano Bellavitis

Auckland Business School, Management and International Business

Date Written: November 8, 2019

Abstract

Block-chain 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, block-chain technology allows for the rise of decentralized financial services, which tend to be more decentralized, innovative, inter-operable, border-less, and transparent. Empowered by block-chain technology, decentralized financial services have the potential to broaden financial inclusion, facilitate open access, encourage permission-less 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.

Keywords: block-chain; bitcoin; ethereum; libra; cryptocurrency; decentralized finance; defi; decentralized platform; decentralization; fintech

Suggested Citation

Chen, Yan and Bellavitis, Cristiano, Blockchain Disruption and Decentralized Finance: The Rise of Decentralized Business Models (November 8, 2019). Journal of Business Venturing Insights, Forthcoming; Stevens Institute of Technology School of Business Research Paper. Available at SSRN: https://ssrn.com/abstract=3483608 or http://dx.doi.org/10.2139/ssrn.3483608

Yan Chen (Contact Author)

Stevens Institute of Technology - School of Business ( email )

Hoboken, NJ 07030
United States

Cristiano Bellavitis

Auckland Business School, Management and International Business ( email )

12 grafton rd
Auckland
Auckland, Auckland 0000
New Zealand

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