Decentralized finance, or DeFi, is a creation of computer-driven programs called smart contracts that function as protocols. This allows every individual who have access to internet to participate,lend their digital assets, earn interest, borrow funds and trade without a middleman. Essentially, DeFi has transformed the traditional banking system into automated computer programs that execute transactions automatically. To engage in DeFi, individuals purchase cryptocurrencies like Ethereum, store them in an electronic wallet, and connect to protocols such as decentralized exchanges. Through these protocols, users can trade their cryptocurrencies for a wide range of assets, facilitated by computer code.
