Decentralized Finance, or DeFi, is reshaping the way people access financial services. Built on blockchain networks like Ethereum, DeFi replaces traditional intermediaries with smart contracts, allowing anyone to lend, borrow, or trade without banks.
The Core of DeFi
At its core, DeFi provides open and permissionless access to financial tools. This means that anyone with an internet connection can participate in global finance without approval from centralized entities.
Benefits of DeFi
- **Transparency:** All transactions are verifiable on the blockchain.
- **Accessibility:** Financial inclusion for the unbanked and underbanked.
- **Programmability:** Smart contracts enable complex automation, from yield farming to synthetic assets.
Despite challenges like volatility and regulation, DeFi continues to innovate, paving the way for a more transparent and equitable global financial system.