Short for Decentralized Finance, DeFi, is a movement that uses blockchain technology and cryptocurrencies to recreate traditional financial services—like lending, borrowing, and trading—without needing a bank or broker in the middle.

Imagine if, instead of going through a financial institution to get a loan or buy a stock, you could directly interact with a global, online marketplace. That’s DeFi: financial transactions occurring on networks like Ethereum, where contracts are powered by code instead of paperwork and bureaucracy. Everything is secured and tracked through a public, digital ledger called a blockchain, making it easier to see exactly what’s going on and reducing the chance of fraud.

The main idea is that you, the individual, have full control over your assets and can take part in financial transactions instantly, from anywhere in the world. There are no bankers, no set banking hours, and typically fewer fees. While this also means there’s more personal responsibility (because there’s no one to call if you forget your password), many find the potential benefits—like higher returns or instant global access—worth exploring. It’s an evolving space, so always do your research and take small, cautious steps when dipping into DeFi for the first time.