Decentralized Finance (DeFi)

Decentralized Finance (DeFi) refers to a financial system built on blockchain technology that aims to recreate and improve traditional financial services like lending, borrowing, and trading without intermediaries like banks. Instead of relying on a central authority, DeFi uses smart contracts—self-executing contracts with predetermined conditions—on decentralized platforms. This allows for open access, transparency, and greater control for users over their assets. Essentially, DeFi offers an innovative way to conduct financial transactions and services, enabling peer-to-peer interactions in a secure and efficient manner while reducing costs and improving accessibility.