Decentralized Finance, or DeFi, refers to a financial ecosystem built on blockchain technology that operates without intermediaries, such as banks or traditional financial institutions. It uses smart contracts—self-executing contracts with the terms directly written into code—to facilitate transactions and services.DeFi applications provide various financial services, including lending, borrowing, trading, and earning interest on cryptocurrency holdings. Users retain control over their assets and can engage in these activities directly from their digital wallets.One key feature of DeFi is its openness; anyone with internet access can participate, often without the need for a bank account or credit score. This makes financial services more accessible to a broader audience.However, DeFi also comes with risks, such as smart contract vulnerabilities and market volatility. Despite these challenges, the growing popularity of DeFi highlights its potential to transform how people engage with finance, promoting transparency and inclusivity.