A critique on decentralized finance from a social, political, and economic perspective

Throughout the ages, social change has largely been brought as a reaction against an establishing entity or idea. Communism, for instance, was a reaction against the industrial revolution that exacerbated the exploitative nature of capitalism. Contemporarily, we are living through perhaps one of the...

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Main Authors: Zizheng Fonghu, Tsz Hon Yuen
Format: Article
Language:English
Published: ELS Publishing (ELSP) 2023-03-01
Series:Blockchain
Subjects:
Online Access:https://elsp-homepage.oss-cn-hongkong.aliyuncs.compaper/journal/open/BC/2023/blockchain20230006.pdf
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author Zizheng Fonghu
Tsz Hon Yuen
author_facet Zizheng Fonghu
Tsz Hon Yuen
author_sort Zizheng Fonghu
collection DOAJ
description Throughout the ages, social change has largely been brought as a reaction against an establishing entity or idea. Communism, for instance, was a reaction against the industrial revolution that exacerbated the exploitative nature of capitalism. Contemporarily, we are living through perhaps one of the most critical turning points in finance that began as a reaction against the solipsistic nature of Wall Street bankers prior to the 2008 financial crisis. This new movement exists within the robust ecosystem of decentralized finance (DeFi). Throughout the past decade, innovation within DeFi has grown exponentially, such that literature on its social, political, and economic effects is yet to be well-understood. Thus, this research paper intends to deconstruct the underlying socio-economic systems surrounding DeFi in order to understand, analyze,and critique its fundamental values and assumptions. The primary philosophical concern is whether decentralized finance can be a suitable substitute to the current financial system via its notions of personal financial freedom.
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spelling doaj-art-359986f95f5643919e4ed96a2d7e56ce2025-08-20T03:07:37ZengELS Publishing (ELSP)Blockchain2959-12602958-81382023-03-011110.55092/blockchain202300061597124912186978304A critique on decentralized finance from a social, political, and economic perspectiveZizheng Fonghu0Tsz Hon Yuen1Department of Computer Science, The University of Hong Kong, Hong Kong, ChinaDepartment of Computer Science, The University of Hong Kong, Hong Kong, ChinaThroughout the ages, social change has largely been brought as a reaction against an establishing entity or idea. Communism, for instance, was a reaction against the industrial revolution that exacerbated the exploitative nature of capitalism. Contemporarily, we are living through perhaps one of the most critical turning points in finance that began as a reaction against the solipsistic nature of Wall Street bankers prior to the 2008 financial crisis. This new movement exists within the robust ecosystem of decentralized finance (DeFi). Throughout the past decade, innovation within DeFi has grown exponentially, such that literature on its social, political, and economic effects is yet to be well-understood. Thus, this research paper intends to deconstruct the underlying socio-economic systems surrounding DeFi in order to understand, analyze,and critique its fundamental values and assumptions. The primary philosophical concern is whether decentralized finance can be a suitable substitute to the current financial system via its notions of personal financial freedom.https://elsp-homepage.oss-cn-hongkong.aliyuncs.compaper/journal/open/BC/2023/blockchain20230006.pdfdecentralized finance, cryptocurrencies, non-fungible tokens, decentralized autonomous organizations, regulation, economics, social issues
spellingShingle Zizheng Fonghu
Tsz Hon Yuen
A critique on decentralized finance from a social, political, and economic perspective
Blockchain
decentralized finance, cryptocurrencies, non-fungible tokens, decentralized autonomous organizations, regulation, economics, social issues
title A critique on decentralized finance from a social, political, and economic perspective
title_full A critique on decentralized finance from a social, political, and economic perspective
title_fullStr A critique on decentralized finance from a social, political, and economic perspective
title_full_unstemmed A critique on decentralized finance from a social, political, and economic perspective
title_short A critique on decentralized finance from a social, political, and economic perspective
title_sort critique on decentralized finance from a social political and economic perspective
topic decentralized finance, cryptocurrencies, non-fungible tokens, decentralized autonomous organizations, regulation, economics, social issues
url https://elsp-homepage.oss-cn-hongkong.aliyuncs.compaper/journal/open/BC/2023/blockchain20230006.pdf
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