#defi
DeFi, or Decentralized Finance, is an ecosystem of financial applications built on blockchain technologies, primarily Ethereum. Unlike the traditional financial system, DeFi does not rely on intermediaries like banks or financial institutions, but instead uses smart contracts that automate and secure transactions. This allows anyone with an internet connection to access financial services such as loans, savings, exchanges, and insurance, without the need to trust third parties. One of the main benefits of DeFi is financial inclusion, as it offers services to unbanked individuals. Additionally, it provides transparency, as all transactions are public on the blockchain, and complete control over digital assets. However, it also entails risks such as market volatility and potential failures in smart contracts. Nevertheless, DeFi represents a revolution in access to and use of financial services, driving a more open and decentralized economy.