Decentralized finance (DeFi) is a rapidly growing sector of the blockchain industry that is unlocking the potential of blockchain technology. DeFi is a form of financial technology that enables users to access financial services without the need for a centralized intermediary. This means that users can access financial services such as lending, borrowing, trading, and investing without the need for a bank or other financial institution.
DeFi is powered by smart contracts, which are self-executing computer programs that are stored on the blockchain. Smart contracts allow users to access financial services without the need for a third-party intermediary. This eliminates the need for trust between parties, as the smart contracts are enforced by the blockchain.
DeFi has the potential to revolutionize the way we access financial services. By eliminating the need for a centralized intermediary, DeFi can reduce costs and increase access to financial services for people around the world. Additionally, DeFi can provide users with more control over their finances, as they are able to access services without the need for a third-party.
DeFi is still in its early stages, but it has already seen tremendous growth. In 2020, the total value locked in DeFi protocols exceeded $20 billion, and the sector is expected to continue to grow in the coming years.
DeFi has the potential to revolutionize the way we access financial services. By eliminating the need for a centralized intermediary, DeFi can reduce costs and increase access to financial services for people around the world. Additionally, DeFi can provide users with more control over their finances, as they are able to access services without the need for a third-party. As the sector continues to grow, it is likely that DeFi will become an increasingly important part of the global financial system.
