Decentralized Finance, or DeFi, is a term that has been gaining popularity in the world of finance and technology. It refers to a new financial system that is built on blockchain technology and is decentralized, meaning that it is not controlled by any central authority or institution.
In traditional finance, banks and other financial institutions act as intermediaries between borrowers and lenders. They provide services such as loans, savings accounts, and investment opportunities. However, these institutions are centralized, meaning that they have control over the financial system and can make decisions that affect the entire economy.