Decentralizedfinance (DeFi) is one of the most exciting modern applications of blockchain technology. Learn more about its importance and how it differs from traditional finance. What is DeFi? DeFi is an anonymous system that completes traditional financial transactions without any use of, or interference from, an intermediary or governing body. Instead of using a neutral third party, DeFi uses an application through blockchain technology, also known as DeFi protocol, to connect users directly; its products and smart contracts maintain the fulfillment of these agreements. While it’s possible to build DeFi apps on other blockchains, Ethereum is the most popular and accessible in 2021. What is a smart contract? Smart contracts make it possible for users to create DeFi apps on top of the blockchain; they’re transactional protocols or computer programs that automatically execute when relevant events tied to the agreement take place. Ethereum is closely related to DeF
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