Decentralized Finance, or DeFi, has emerged as one of the most revolutionary applications of blockchain technology, offering a new paradigm for financial systems. By leveraging blockchain's transparency, security, and decentralization, DeFi aims to democratize access to financial services and eliminate the need for traditional intermediaries. This article delves into the concept of DeFi, its key components, benefits, challenges, and its potential to reshape the financial landscape. What is Decentralized Finance (DeFi)? Decentralized Finance refers to a collection of financial applications built on blockchain networks, primarily Ethereum. These applications replicate traditional financial services like lending, borrowing, trading, and investing but operate in a decentralized manner. DeFi platforms use smart contracts to automate transactions and processes, removing the need for banks, brokers, or any centralized institutions. Key Components of DeFi Smart Contracts : Smart contracts...
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