Blockchain-Based Financial Systems Deployment and Challenges

Abstract

Web3 encompasses decentralized finance (DeFi), which leverages blockchain and smart contracts to create an open and accessible financial system. They promote decentralization, trust, and innovation across industries. However, challenges include scalability, energy consumption, price volatility, regulatory uncertainty, and security vulnerabilities. Governments are working on regulatory frameworks, and adoption is growing. Education and awareness are crucial. In particular, there is a need to identify and address the technical, economic, social, and legal issues that may arise from the adoption and implementation of Web 3.0, including concerns around governance, scalability, interoperability, security, and regulation. Therefore, the purpose of the book chapter is to cover the key issues and challenges associated with blockchain technology and to develop a comprehensive understanding of the opportunities and limitations of this technology in order to inform the development and adoption of Web 3.0 applications and services.