Abstract

Decentralized finance (DeFi) plays a pivotal role in supporting and promoting sustainable development goals (SDGs) globally by providing innovative and comprehensive financial solutions. Decentralized finance - based on blockchain technology - provides a high level of transparency and security in financial transactions, which enhances confidence between investors and beneficiaries and reduces the risks of corruption that hinders the achievement of sustainable development. Decentralized finance can also improve financial inclusion by providing financial services to groups that do not deal with traditional banks, which contributes to reducing poverty and stimulating economic growth. Decentralized finance can facilitate investments in green and sustainable projects via digital technologies such as digital tokens and smart contracts, promoting innovation in the areas of renewable energy, waste management, and sustainable agriculture. Decentralized finance also helps reduce operational costs by eliminating intermediaries, allowing more resources to be directed toward development projects rather than administrative expenses. The research also found that decentralized models in decentralized finance involve communities in decision-making, which ensures the design and implementation of projects in accordance with the needs and priorities of local residents, as the field of decentralized finance is characterized by rapid innovation, which leads to the development of new financial products and services targeting sustainability challenges. Despite its many advantages, decentralized finance faces challenges such as regulatory uncertainty, security concerns, and scalability issues. However, by developing an appropriate regulatory framework and improving security protocols, decentralized finance can become a powerful and effective tool in achieving and promoting sustainable development goals globally.