
18 Minutes
Decentralized Finance (DeFi)
Decentralized Finance (DeFi) is revolutionizing the financial landscape by leveraging blockchain technology to offer financial services without intermediaries. This blog will explore the fundamentals of DeFi, the differences between decentralized and centralized exchanges, the benefits and challenges of DeFi lending platforms, and the future outlook of this innovative financial ecosystem.
What is DeFi?
DeFi, short for Decentralized Finance, refers to a collection of financial applications built on blockchain technology that operate without traditional intermediaries like banks or financial institutions. By utilizing smart contracts, DeFi platforms enable peer-to-peer financial transactions, including lending, borrowing, trading, and investing, in a transparent and trustless manner.
Decentralized Finance (DeFi) is built on five fundamental components:
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