There is no question that there is a lot of excitement around the potential for blockchain technology to revolutionize how financial services are delivered. But what does this mean in practical terms, and more specifically, how can defi (defi = decentralized finance) play a role?

To start with, let's take a step back and look at the bigger picture. The fundamental problem that blockchain was designed to solve is the need for trust between parties who don't know or trust each other. In the context of financial services, this means removing the need for intermediaries such as banks or credit card companies. This not only reduces costs but also opens up new opportunities for innovation by removing traditional restrictions on who can participate in certain transactions or markets.

Defi takes this one step further by decentralizing finance itself. This means breaking down the barriers between different types of financial products and services and allowing anyone with an internet connection to participate directly in global markets. For example, you could use defi to issue a loan directly to someone you've never met halfway across the world without having to go through any middlemen.

This level of openness and transparency also brings with it new risks which must be managed carefully if defi is going to live up its promise as a transformative technology. But if done correctly, defi has enormous potential to change how we think about money and our relationship with it.