DeFi assets are getting a lot of recent attention from investors as they change the way we do business and take crypto transactions to the next frontier.

What Is DeFi?

You may have heard the name in the news lately, but what does DeFi mean?

DeFi, short for Decentralized Finance, is a collective term for financial products and services accessible to anyone with an internet connection. The goal of DeFi is simple: shake up the traditional world of finance as we know it by offering a global and open alternative to the current financial system.

To do this, DeFi consists of crypto networks that focus on peer-to-peer transactions, decentralized lending and borrowing, and more. By harnessing the efficiency and power of smart contracts (digital contracts that live on the blockchain), DeFi platforms create a space for lending, borrowing, trading, saving, and earning interest that doesn't require all of the usual bureaucracy and paperwork.

DeFi also uses decentralized applications, known as dApps, to power peer-to-peer financial transactions on-chain. Most dApps are currently built on the Ethereum protocol, which is known as the backbone of the DeFi network.

DeFi assets are getting a lot of recent attention from investors as they change the way we do business and take crypto transactions to the next frontier.

What Is DeFi?

You may have heard the name in the news lately, but what does DeFi mean?

DeFi, short for Decentralized Finance, is a collective term for financial products and services accessible to anyone with an internet connection. The goal of DeFi is simple: shake up the traditional world of finance as we know it by offering a global and open alternative to the current financial system.

To do this, DeFi consists of crypto networks that focus on peer-to-peer transactions, decentralized lending and borrowing, and more. By harnessing the efficiency and power of smart contracts (digital contracts that live on the blockchain), DeFi platforms create a space for lending, borrowing, trading, saving, and earning interest that doesn't require all of the usual bureaucracy and paperwork.

DeFi also uses decentralized applications, known as dApps, to power peer-to-peer financial transactions on-chain. Most dApps are currently built on the Ethereum protocol, which is known as the backbone of the DeFi network.