Decentralized Finance (Defi)Decentralized finance (DeFi) refers to a shift towards building financial applications and processes on decentralized infrastructure, enabling peer-to-peer lending, trading,... Read More refers to the movement of building decentralizedDecentralization, an aspect of blockchain technology, facilitates power or authority distribution among individuals, groups, or institutions. A decentralized structure allows... Read More financial applications that have no central authorityA central authority is an entity that holds centralized control over something, such as a financial exchange, asset, or transaction.... Read More and are censorship-free. Defi applications cover many use cases, a few popular ones are stablecoins, lending/borrowing, and trading (decentralized exchanges). By removing the middleman in systems, Defi applications are able to achieve a better rate of return for their users, while lowering the barrier of entry as the application does not discriminate or censor any particular party from joining.
