What is Decentralized Finance (DeFi)?
Decentralized Finance (DeFi) is a blockchain-based, global and open alternative to the traditional financial system. The DeFi ecosystem has applications that let you transact cryptocurrencies, similar to fiat money transactions in traditional finance. So using Decentralized Applications (or dApps), you can trade, deposit, lend, borrow, and invest in cryptocurrencies.
The Decentralized in DeFi means there is no central authority or financial intermediaries .DeFi is fully transparent and maintained over blockchain networks.
According to Ethereum.org, DeFi has Programmable Money — software logic built into the digital “money". It means that digital tokens are programmable, making them functional for a wide range of applications like loans, insurance, and payments.
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