Distributed Finance (DeFi) protocols are platforms built on blockchain technology that aim to provide various financial services without the need for intermediaries like banks or traditional financial institutions. These protocols allow users to access services such as lending, borrowing, trading, and earning interest through decentralized applications (dApps).
DeFi protocols operate on decentralized networks, meaning they are not controlled by any single entity. This makes them more transparent, secure, and resistant to censorship. Users interact directly with smart contracts on the blockchain to access these financial services, cutting out the middleman and reducing costs.
By leveraging blockchain technology, DeFi protocols enable users to retain control of their assets and access financial services in a permissionless and borderless manner. This has the potential to democratize finance and increase financial inclusion by providing equal opportunities to individuals worldwide, regardless of their background or location.
Overall, DeFi protocols are revolutionizing the financial industry by offering new possibilities for accessing financial services in a more efficient, secure, and accessible way.
