What is DeFi?

Decentralized Finance (DeFi) has been in the spotlight in recent months, with several DeFi projects gaining traction and their tokens soaring in prices have attracted a lot more attention. But what exactly is decentralized finance and what can it do that traditional finance couldn’t?

DeFi represents an ecosystem of financial applications that are built ontop of blockchain networks. Financial applications ranging from borrowing/lending, to owning fractional assets through tokenization and peer-to-peer transactions.