Decentralized Finance (DeFi) is a blockchain-based financial system that operates without intermediaries, providing open access to financial services.
Decentralized Finance (DeFi) is a financial system built on blockchain technology that operates without intermediaries such as banks or financial institutions. DeFi applications use smart contracts, which are self-executing computer programs that automate transactions and enforce the terms of a contract. These smart contracts are stored on a blockchain, which provides security and transparency for all transactions.
DeFi offers a range of financial services, including borrowing and lending, trading, insurance, and asset management, all without the need for intermediaries. DeFi platforms are typically open-source and accessible to anyone with an internet connection and a digital wallet, making them accessible to people around the world who may not have access to traditional financial services.
One of the main benefits of DeFi is that it provides greater financial freedom and privacy for users. DeFi platforms operate on a peer-to-peer network, which means that transactions occur directly between users without the need for intermediaries. This reduces the risk of censorship or interference by third parties, and provides users with greater control over their assets.