Decentralized finance, or DeFi, is rapidly emerging as one of the most promising applications of cryptocurrency technology. And while it may sound complicated, DeFi is just an umbrella term used to describe financial products and services that are completely independent of any authorities.
Imagine a world where common services such as loans, cross-border payments, insurance, and retirement savings don’t require a bank account or approval from an authority. That is DeFi’s vision essentially, to establish an open standard. This new standard doesn’t leave room for predatory intermediaries or third parties either — and promises to herald a new era of financial efficiency, inclusion, and transparency.