Decentralized Finance Architecture
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Decentralized finance architecture is a stack of services in different layers, and each layer has different functions. The diagram below illustrates the concept of decentralized finance architecture in different layers.
In general, blockchain users can safely store, exchange, or change ownership of digital assets. Blockchain technology replaces the execution layer and settlement layer in traditional financial services.
Additionally, there are supporting functions that manage non-financial information flow, such as asset price data. This data is streamed through the oracle service into the decentralized system from the database located outside the settlement layer. The data will be used further in calculations and processes.
