Decentralised Finance (DeFi) has emerged as a revolutionary subset of the cryptocurrency ecosystem, transforming traditional financial services by leveraging blockchain technology and smart contracts. In this report, we will delve into what DeFi is, its key components, benefits, challenges, and its intricate relationship with the broader cryptocurrency ecosystem.
Understanding Decentralised Finance (DeFi):
Decentralised Finance (DeFi) refers to a collection of financial applications and services built on blockchain platforms, primarily Ethereum, that aim to recreate traditional financial services in a Decentralised manner. DeFi eliminates intermediaries, enhances accessibility, and offers more open and permissionless access to financial instruments.