Within the broader cryptocurrency and blockchain business, the field of “decentralized finance,” or “DeFi,” focuses on offering a decentralized version of traditional financial opportunities. In the real world, financial organizations provide their clients with services like loans and cash storage. On the other hand, centralized organizations control these offers.
DeFi solutions leverage distributed ledger technology (DLT) to provide many of the same benefits, but they are governed by several players according to regulations enforced by smart contracts. DeFi systems also frequently provide customers more freedom in terms of managing and storing their own assets. Furthermore, as opposed to trading on centralized digital asset platforms, decentralized exchanges, or DEXs, further decentralize digital asset trade.