Decentralized Finance, or DeFi, started in 2018 and emerged as a concept that aims to revolutionize traditional financial systems by leveraging the power of blockchain technology. In this concept decision-making and execution transferred from a centralized entity to distributed network. In this meaning, it is called decentralized finance. DeFi provides an open and transparent framework where individuals can access financial services directly, without relying on middlemen. DeFi offers greater financial inclusivity and security worldwide users,by eliminating the need for intermediaries.
This decentralized nature allows everyone to participate regardless of their geographical location and it operates without any central authority. DeFi utilizes blockchain networks, predominantly Ethereum, to create a decentralized ecosystem for a wide range of financial activities.Through DeFi protocols, individuals can lend their digital assets and earn interest, borrow funds collateralized by their assets, and trade cryptocurrencies.
