DeFi, short for Decentralized Finance, refers to a financial system built on blockchain technology that operates without traditional intermediaries such as banks or financial institutions. DeFi applications use smart contracts to enable financial services like lending, borrowing, trading, and earning interest in a transparent and automated way.
DeFi platforms are primarily built on blockchains such as Ethereum and allow users to interact directly with financial protocols using digital wallets. Transactions are recorded on public blockchains, providing openness and reducing reliance on centralized control.
Beyond innovation, DeFi aims to increase financial accessibility and efficiency by offering open, permissionless financial services. It represents a shift toward a more inclusive and decentralized global financial ecosystem.
