DeFi’s Instability: Reforming Commercial Law with Opportunities and Challenges

Decentralized finance (DeFi) is a system of financial applications that are constructed on top of blockchain networks. DeFi intends to develop an open-source, permissionless, and transparent financial system that functions without a centralized authority. It also acts as a kind of non-custodial finance since users have complete authority over their assets and transact via initiatives for smart contracts that facilitate peer-to-peer interactions. it also presents serious dangers to traditional finance ecosystems. The rise of DeFi indicates a change in the world of financial services, it provides advantages such as greater accessibility, transparency and lower costs, but it it also presents a number of legal issues, too. In ۲۰۲۴, navigating these hurdles is more crucial as regulators increase their examination of this swiftly expanding sector. To be successful in the DeFi industry, companies must be conscious of these challenges and take aggressive steps to guarantee they operate within the limits of the law. This narrative review aims DeFi's transformational potential, c while highlighting the urgent need for adaptable ommercial law frameworks. By addressing these legal issues, this article aims to direct policymakers, laweyers, and scholars in the direction of a fair strategy that encourages creativity while maintaining accountability and equity in the DeFi age.

کلیدواژه ها:

Decentralized finance (DeFi) ، Smart contract ، Commercial law ، Legal challenges ، Regulatory Uncertainty