What is DeFi?
We are in the midst of a revolution, and the next step in finance is going to be big. Crypto is now introducing the next big financial disruption in lending and borrowing.
Lending and borrowing are the building blocks of banking. They are what makes the whole financial system run. Banks exist because of this.
Decentralized Finance, or DeFi, is a term that describes open financial products and services that can provide an alternative to those offered by centralized entities like banks and credit unions.
With DeFi, we can now allow anyone with an internet connection to access financial services including borrowing, lending, and trading. These services are now available without the restrictions they would experience using a trusted (centralized) entity.
DeFi offers an alternative to traditional finance; It’s changing the way people interact with money, offering lower-cost, faster, and more flexible products and services.
These services are typically accessible using applications built on top of decentralized protocols using blockchain technology and are known as Dapps or decentralized apps. This is one of the fastest growing sectors in the crypto sphere.
With DeFi, you can now become your own bank by earning yields that were previously only available to large investors or institutions. That's why this could be the next revolution in finance.