#DEFİ stands for "Decentralized Finance."
It is a term that describes financial services and products built on #blockchaintechnolo without the involvement of traditional financial intermediaries, such as banks and brokers.
In traditional financial systems, all processes are controlled by centralized organizations (banks, exchanges). In DeFi, all operations are carried out through smart contracts on the blockchain. This eliminates intermediaries and reduces fees.
To clarify, smart contracts are software algorithms that automatically execute the terms of an agreement written in computer code. Essentially, they are contracts, but recorded as computer code.
Unlike traditional paper contracts, #Smartcontract. automatically verify and enforce agreements without intermediaries. All information about #transactions and smart contracts is publicly available on the blockchain.