Decentralized Exchanges (Dexs) And Sustainable Entrepreneurship In India: Opportunities, Challenges, And Policy Implications

Abstract

The financial market has gone into paradigm shift from strict, highly regulated centralized system to open, easily accessible and permission less infrastructure for the last decades. These are powered by blockchain technologies. Decentralize Exchange is the primary source for this transformation which enables the direct person to person trading without intermediaries. DEXs also facilitates innovative entrepreneurial models in the Web3 which is an internet-built block chain technology where information is stored across multiple computers rather than central servers that create peer to peer communication without intermediaries. It also helps in the DeFi ecosystem, which is an emerging financial system using blockchain and crypto currencies to enable direct transactions without intermediaries. DEXs offer wide opportunities for SMEs, Startups, and marginalized communities in India. Despite its potential financial inclusion, sustainable growth and capital democratization still remain challenges in adoption of technology due to regulatory ambiguity, socio cultural barriers and complexity of technology. This paper examines the potential of Decentralized Exchange in fostering inclusive digital entrepreneurship in India. This study also analyzes the Tamil Nadu readiness in adopting blockchain technology. It develops a conceptual framework of linking DEX adoption, sustainability, and socio-economic outcomes. The study includes the theories like the Technology Acceptance Model (TAM), Institutional Theory (IT), and Diffusion of innovation (DOF) and proposes testable hypothesis and proposition to guide empirical research and policy formulation.