Decentralised Finance, or DeFi, is a term for a variety of peer-to-peer financial services or applications that is build on top of public blockchains, ready to start disrupting today’s financial third party services (for example, banks). With DeFi, you can do most of the things that general banks support, like earning interest, borrowing money, lending, trading assets, buying an insurance and more. However, DeFi doesn’t require a third party.
DeFi has the potential to create more open and fair financial markets that are accessible (and cheeper) to anyone. You don’t need to get through the customer service of a bank to utilise their services, because you just get access to anything by creating a wallet. This also preserves your personal information, because you don’t need to provide it. However, the full set of transactions is very transparent, where everyone involved is able to gain insights in the transaction(s).
