Blockchain Based Future Banking by Decentralized Exchanges
Ramakrishnan Raman, Arul Mary Rexy, C. Viswanathan, Ankit Shrirvastava, Enthrakandi Narasimhan Ganesh · 2023
Decentralized Finance (DeFi) is a blockchain-based financial system that offers open and transparent financial services. This paradigm will enhance traditional banking security, transparency, inclusivity, and efficiency. Decentralized financial systems employ blockchain decentralized exchanges (DEX)'s without intermediaries and their transactions are protected by cryptography. Public ledger users may verify blockchain transactions. Without ID or address, traditional banks decline customers. Anyone with internet may trade finance on DEXs’. This inclusion may aid unbanked and underbanked individuals, enhancing global prosperity. Future banks will employ DEX for efficiency and intermediaries and complex processes of conventional banking are removed. DEX speeds up transactions by eliminating intermediaries. Scalability issues must be addressed as platforms grow. Future banking on DEX-based blockchain requires study into the ecosystem's multiple applications and advancements.