What is decentralized finance (DeFi)

What is decentralized finance (DeFi): An explanation of the basic concept of DeFi and how it differs from traditional finance in detail

Decentralized finance, or DeFi, is a financial system built on blockchain technology that allows for peer-to-peer transactions without the need for intermediaries.

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DeFi is based on the idea of creating a decentralized, open-source financial system that is accessible to anyone with an internet connection.

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DeFi allows for a wide variety of financial services, including lending, borrowing, trading, and insurance, to be built on top of the blockchain.

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The use of smart contracts in DeFi allows for the automation of many financial transactions, such as the issuance of loans or the execution of trades.

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One of the key benefits of DeFi is the potential for greater financial inclusion, as it allows individuals and businesses in underbanked or unbanked regions to access financial services.

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DeFi also has the potential to increase transparency and reduce the risk of fraud in financial transactions.

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