Is Decentralized Finance the Future of Open Finance?
Open Finance is considered a significant trend in the financial industry. In parallel, based on technological developments, a trend toward Decentralized Finance (DeFi) has also become established. Due to their similar goals, it is worth considering the concepts of Open Finance and Decentralized Finance in an integrated way. The main differences between the concepts lie in the technology used and the system of governance. Depending on the use case and customer type, the needs for the involvement of intermediaries are different. Therefore, coexistence of the different concepts is expected to be the future, which spurs a focus on their interoperability. Platforms offer ready-to-use solutions and help reduce complexity for market participants.