Difference between revisions of "Decentralized Finance"

Short for decentralized finance, DeFi is a collective term for financial products and services on [[public blockchains]] enabling anyone to use financial services anywhere. Unlike [[centralized finance]], also known as CeFi, DeFi is not dependent on centralized authorities for its operations but uses [[smart contracts]]. "Smart contracts" are programs running on the blockchain that can execute automatically without a third party when certain conditions are met. Smart contracts allow developers to build far more sophisticated functional applications that goes beyond sending and receiving [[Cryptocurrency|cryptocurrencies]]. These programs are called [[Decentralised Applications (DApps)|decentralized applications]] (DApps).