Decentralised finance (DeFi) is a financial technology based on blockchain that removes the need for third parties in traditional financial services, such as banks, stockbrokers, and exchanges.
DeFi applications are built on top of public blockchains, such as Ethereum, and use smart contracts to automate financial transactions. This allows for peer-to-peer transactions without the need for a central authority.
Some of the benefits of DeFi include:
- Transparency: All transactions on a blockchain are public, which makes them more transparent than traditional financial transactions.
- Efficiency: DeFi transactions are often faster and cheaper than traditional financial transactions.
- Security: DeFi transactions are secured by blockchain technology, which is very secure.
- Accessibility: DeFi applications are open to anyone with an internet connection, regardless of their location or financial status.