Decentralized finance, or ‘DeFi’, is an emerging digital financial infrastructure that theoretically eliminates the need for a central bank or government agency to approve financial transactions. Regarded by many as an umbrella term for a new wave of financial services innovation, DeFi is deeply connected with blockchain — the decentralized, immutable, public ledger on which Bitcoin is based — that enables all computers (or nodes) on a network to hold a copy of the history of transactions. The idea is that no single entity has control over, or can alter, that ledger of transactions.
Most of the financial services that could be defined as DeFi can be found on the Ethereum network, the…
