DeFi (Decentralized Finance) refers to a blockchain-based form of finance that does not rely on central financial intermediaries such as brokerages, exchanges, or banks. Instead, it utilizes smart contracts on blockchains, primarily Ethereum. Key differences from traditional finance:
Permissionless: Anyone can access DeFi protocols without KYC/AML requirements
Transparent: All transactions are visible on the blockchain
Composable: DeFi protocols can be combined like "money legos"
Non-custodial: Users maintain control of their assets
Global: Available 24/7 worldwide without geographical restrictions
Programmable: Financial logic is encoded in smart contracts
Rewriting in plainer words…
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