The idea behind cryptocurrency is to have a form of money which is accessible to anyone around the world and is not controlled by any government or central bank.
Decentralised Finance (or DeFi) takes this one step further. DeFi aims to provide every single financial service you use today, to anyone around the world, without the need for any centralised institutions like banks and governments.
We’ve already talked about smart contracts and Dapps. These are the backbone of DeFI and they have the following characteristics:
- DeFi Dapps are not managed by any company or centralised authority. Instead, the rules that govern them are written into smart contracts
- DeFi Dapps are all designed to be global and available to anyone with an internet connection.