Decentralized finance, or DeFi, is a term used to describe a new financial system that is built on blockchain technology. Unlike traditional finance, which relies on centralized institutions like banks and exchanges, DeFi aims to create a more open and accessible financial system that is not controlled by any single entity.

One of the key features of DeFi is its use of smart contracts, which are self-executing contracts with the terms of the agreement directly written into code. This technology allows for transactions to be automated and executed without the need for intermediaries, reducing costs and increasing efficiency.

Another important aspect of DeFi is its use of cryptocurrencies, such as Bitcoin and Ethereum, to facilitate financial transactions. These digital assets can be exchanged, borrowed, and lent on decentralized platforms, allowing users to access a wide range of financial services without the need for a traditional bank account.

Overall, DeFi is revolutionizing the financial industry by creating a more open and transparent system that is accessible to anyone with an internet connection. As this technology continues to evolve, we can expect to see more innovative financial products and services that challenge the traditional way of doing finance.#25#