DeFi is an abbreviation for “Decentralized Finance”, a concept that relies on blockchain technology and smart contracts to transform traditional financial systems into an open and decentralized financial system. DeFi aims to achieve equal access to financial services and enable individuals to carry out financial transactions without the need for a central third party like traditional banks.

1. Smart Contracts: DeFi uses smart contracts, which are software that runs on the blockchain and is automatically executed when specific conditions are met.

2. Decentralized Finance: DeFi provides a range of diverse financial services including loans, lending, trading, insurance, and remittances. These services are implemented via decentralized financial applications,

3. Open Access: DeFi allows open access to everyone, and anyone with internet access can benefit from the financial services offered. There is no need to obtain approval or permission from a central authority,

4. Verification and Transparency: All transactions and activities in DeFi are recorded on the blockchain, which is a public and shared ledger that can be accessed by everyone.

5. Challenges and risks: DeFi faces some challenges and risks, including security verification, economic sustainability, and regulation. Smart contracts may also be vulnerable to security vulnerabilities, which must be addressed carefully.$BNB $BIFI $BTC