DeFi aims to provide a more open, transparent, and secure way to manage financial transactions, often using smart contracts to enforce rules and ensure the integrity of the system. Some of the key features of DeFi include:
- Decentralization: DeFi applications operate on decentralized networks, which means that no single entity controls the system. This allows for greater security, transparency, and fault tolerance.
- Blockchain-based: DeFi applications are built on blockchain technology, which provides a secure and distributed ledger for recording transactions.