Decentralized finance, or DeFi, refers to a category of financial services that are built on blockchain technology. Unlike traditional financial systems that rely on centralized institutions like banks, DeFi operates on decentralized platforms that are open to anyone with an internet connection.

One of the key features of DeFi is its ability to eliminate the need for intermediaries, such as banks and financial regulators. This means that users have more control over their own finances and can transact directly with each other without the need for a third party.

DeFi applications are built using smart contracts, which are self-executing contracts with the terms of the agreement directly written into code. This technology enables the automation of financial transactions, reducing the risk of fraud and human error.

Some popular DeFi applications include decentralized exchanges, lending platforms, and stablecoins. These services are gaining popularity among cryptocurrency enthusiasts as they offer lower fees, faster transaction times, and greater accessibility compared to traditional financial systems.

In conclusion, DeFi is revolutionizing the way we think about finance by providing a more transparent, efficient, and inclusive financial system. As the sector continues to grow and evolve, it is likely to play a significant role in shaping the future of money and banking.#25#