Decentralized Finance and the End of Traditional Banking

This book provides the essential knowledge needed to navigate the revolutionary future of finance with confidence through its comprehensive and accessible exploration of decentralized finance. This book is an in-depth exploration of the transformative power of decentralized finance (DeFi) and its potential to revolutionize the global financial system through in-depth analyses of the rise of DeFi, covering a wide range of topics such as cryptocurrencies, blockchain technology, smart contracts, decentralized exchanges, stablecoins, governance, and more. The volume offers readers a comprehensive understanding of the various aspects and components of the decentralized finance ecosystem. Adopting a forward-looking approach, the book examines the long-term implications for the financial industry, regulatory bodies, and the global economy. It explores the potential consequences of this paradigm shift, equipping readers with the knowledge to navigate the future of finance with confidence. By striking a balance between technical accuracy and accessibility, this book ensures that readers from various backgrounds will gain a comprehensive understanding of the complex concepts associated with DeFi. Readers will find the book: Introduces the emerging DeFi ecosystem and its potential to transform the financial industry, providing a glimpse into the future of finance; Provides practical advice on how to invest in DeFi and navigate the rapidly evolving landscape, offering insights into the DeFi revolution and how to generate higher returns; Offers a comprehensive, in-depth exploration of the technologies driving DeFi, from blockchain technology to smart contracts; Explains how DeFi is challenging the traditional banking model and disrupting the financial industry, making it a must-read for anyone interested in the future of finance. Audience Academics, finance professionals, policymakers and regulators working with decentralized finance to revolutionize the world of banking.

Preface xvii Part I: Fundamentals of Cryptocurrency and Blockchain Technology 1 1 Introduction to Cryptocurrency and Blockchain 3 Vinita Choudhary, Neha Kamboj and Sonal Trivedi 2 A Journey Into the World of Cryptocurrency and Bitcoin Technology 21 Anju Rohilla, Priya Jindal and Ansh Jindal Part II: Evolution and Disruption in Finance 39 3 Traditional Finance vs. Decentralized Finance: A Comparative Analysis 41 Divya Bansal and Naboshree Bhattacharya 4 Traditional Banking to Digital Banking: Technological Transformation, Trends and Disruptions 61 Rakhi Arora and Animesh Singh 5 The Meltdown Effect: Financial Crises and the Global Economic Ripple 81 Mukul Bhatnagar, Sanjay Taneja, Pawan Kumar and Ercan Ozen Part III: The Prospective of Decentralized Finance and Its Components 99 6 The Prospective of Decentralized Finance and Its Impact on Traditional Banking 101 Vivek Sharma and Sanjay Taneja 7 Exploring the Effectiveness of Centralized Exchange and Decentralized Exchange for Cryptocurrency Trading in the World of DeFi for Sustainable Finance 115 Arvinder Kaur, Harmanpreet Kaur and Aarti Dangwal 8 Crypto Airdrops: Marketing Tool for Cryptocurrency Markets 135 Shivani Inder 9 Unlocking the Power of Decentralized Exchanges: A Financial Paradigm Shift 149 Jyoti Verma, Anjali Sharma and Gagandeep 10 Stablecoins: The Cornerstone of DeFi 165 Reepu, Pawan Kumar, Sanjay Taneja and Ercan Ozen 11 Tokenization of Stable Assets to Cryptocurrency: Transformation of Traditional Investments and Trading to Digital Financing 179 Nikhil Modi and Sridhar Manohar Part IV: Governance, Future of Banking and Consumer Perspectives 199 12 Decentralized Finance's Governance—A Review of Decentralized Autonomous Organizations 201 Shikha Singh, Deepa Gupta, Mukul Gupta and Roshan Kumar 13 Unified Payment Interface (UPI): An Analytical Dissection of the Current Framework and Future Scope of Introducing a Charge-per-Transaction Model 227 Rashmi Aggarwal, Tanvi Verma, Ishaan Sharma, Ashwin Kumar and Jatin Verma 14 Perspectives of Consumers Toward Cashless Transactions 241 Priya Jindal and Deepa Sharma 15 Bitcoin Ascent: Fueling the DeFi Revolution 259 Harmanpreet Kaur and Arvinder Kaur 16 Future of Decentralized Finance—Disruption of the Global Banking System 277 Divya Bansal and Naboshree Bhattacharya Part V: Integration with Emerging Technologies 289 17 Wallets in Metaverse: Building Block for Virtual World 291 Gurtej Singh and Shivani Inder 18 Examining the Convergence of Virtual and Traditional Assets in Crypto Collisions 313 Gagandeep and Gioia Arnone 19 Decentralized Dynamics: Navigating Governance in DeFi Realms 339 Gagandeep and Jyoti Verma References 359 Index 363