What Is Decentralized Finance (DeFi) and How Does It Work?
In today's ever-evolving financial ecosystem, Decentralized Finance (DeFi) has emerged as a transformative force, reshaping traditional financial services through blockchain technology. In this comprehensive guide, we delve into the intricacies of DeFi, exploring its definition, workings, and implications for the future of finance. What is Decentralized Finance (DeFi)? Decentralised Finance, or DeFi, refers to a financial system built on blockchain technology to recreate traditional financial services without relying on centralised intermediaries, such as banks or brokerages. DeFi platforms utilise smart contracts to automate and facilitate transactions, offering a wide range of financial services accessible to anyone with an internet connection and compatible digital wallet. How Does DeFi Work? Decentralised Finance (DeFi) operates on blockchain technology and uses smart contracts to automate and facilitate financial transactions without traditional intermediaries. ...