What is Decentralized Finance (DeFi)? Professional Definition
Decentralized Finance (DeFi) is Financial system built on blockchain without intermediaries This is a widely used professional term in related fields.
A blockchain-based financial system that eliminates traditional intermediaries like banks, enabling peer-to-peer lending, borrowing, trading, and other financial services using smart contracts. DeFi platforms operate transparently on public blockchains, providing users with full control over their assets.
Frequently Asked Questions
- Q: What scenarios does this financial term apply to?
A: It is commonly used in banking, stocks, funds and wealth management. - Q: How is this term applied in financial analysis?
A: It helps analysts evaluate risks, returns and market performance in finance. - Q: Why is this term important for investors?
A: It guides investors to make rational decisions and avoid financial risks.
Reference Source: Decentralized Finance (DeFi) Official Document