🌷#DeFiGetsGraded 🌷

💥What is Decentralized Finance (DeFi)?💥

✨️Decentralized Finance (DeFi) is an emerging financial system based on the peer-to-peer principle, utilizing blockchain technology and cryptocurrencies, to enable individuals, companies, and other entities to conduct transactions directly with one another. The fundamental principle behind DeFi is to remove third parties, such as banks, from the financial system, thereby reducing costs and transaction times.

✨️In the United States, the Federal Reserve and the Securities and Exchange Commission (SEC) set the rules for centralized financial institutions, such as banks and brokerage firms, which consumers rely on for direct access to capital and financial services. Decentralized finance presents a challenge to this centralized financial system by enabling individuals to conduct peer-to-peer transactions.