DeFi

DeFi (Decentralized Finance) represents a revolutionary financial system built on blockchain technology that recreates and enhances traditional financial services through open-source protocols and applications that operate without centralized intermediaries like banks or brokerages.

Through smart contracts, DeFi platforms enable permissionless access to sophisticated financial services including lending, borrowing, trading, derivatives, insurance, and asset management, all operating transparently with code that anyone can inspect, audit, and interact with directly.

By eliminating middlemen and automating processes, DeFi dramatically reduces costs, removes artificial barriers to participation, and creates 24/7 global markets where assets can be traded, collateralized, and utilized in innovative ways not possible in traditional finance.

DeFi's composability allows protocols to seamlessly integrate with each other, creating an interconnected ecosystem where applications can build upon one another like "money legos," enabling rapid innovation and increasingly sophisticated financial products accessible to anyone with an internet connection.

While still evolving and facing challenges around scalability, security, and regulation, DeFi represents a fundamental shift toward more open, efficient, and inclusive financial infrastructure that could ultimately transform how value is exchanged, stored, and managed globally.