What Does Decentralized Finance (DeFi) Mean?
Decentralized Finance (DeFi) is a blockchain-based financial system. Instead of relying on centralized intermediaries like banks, stock exchanges, or brokers, DeFi financial services use smart contracts to record transactions and transfer funds.
Techopedia Explains Decentralized Finance (DeFi)
The concept of a decentralized financial system is relatively new. MakerDAO is credited as the first DeFi platform to receive sufficient use and credibility. While the platform itself was founded in 2014 as a concept, it allowed users to buy, exchange, and borrow a cryptocurrency known as Dai, which wasn’t released until late 2017. Unlike other cryptocurrencies, Dai is tied to the US dollar, making it one of the most stable coins to trade with through the Ethereum blockchain.
