DeFi is short for the phrase “decentralized finance”, is a dynamically developing area that allows participants to make financial transactions directly with network users. DeFi already allows users to perform most of the operations offered by traditional banks and centralized financial institutions, offering more and more new products and digital solutions every day.
DeFi refers to decentralized financial services built on blockchain technology as opposed to centralized financial services provided through banks or other traditional financial institutions. Users have the opportunity to use cryptocurrency to provide most of the services that traditional banks offer only when using state fiat currencies – to issue loans, receive dividends, trade assets, purchase insurance and much more. DeFi capabilities are often faster, cheaper and more efficient than traditional ones.
When using DeFi, users gain access to their assets through secure digital wallets and enter into smart contracts to make transactions. To use DeFi, you just need to be connected to the Internet.