DeFi, DLT, Blockchain and Cryptoassets in the Capital Market.

The decentralized approach to finance is redefining the role of exchanges and other intermediaries. Market participants form a network in which it is possible to conduct secured transactions between two or more parties (potentially) worldwide. Distributed ledger technology based on the blockchain approach provides the technological foundation. The blockchain was first described in 2008 in the Bitcoin whitepaper. This was published under the pseudonym Satoshi Nakamoto. The actual inventor remains unknown to this day. The blockchain technology has become known over the years, in addition to Bitcoin, through cryptocurrencies such as Ethereum, Ripple, or Litecoin. Products of the capital market can be represented by the participants of these networks as so-called tokens and defined via smart contracts, which technically implement the properties of the product. This technical representation (cryptoassets) allows market participants to trade and transfer the products in direct exchange with lower hurdles, as well as to receive the monetary equivalent. Due to the technical characteristics (e.g. definition of a consensus algorithm) of the blockchain technology, it is possible for the participants in DLT networks to have their transactions verified by the participants and cryptographically secured. In this way, a decentralized financial network with different participants, who do not necessarily have to know each other, can be established in the vision.