Decentralized finance (DeFi) is an umbrella term for a variety of public blockchain applications and projects aimed at disrupting the traditional finance world. DeFi is defined as financial applications built on blockchain technologies, typically using smart contracts, and is inspired by blockchain technology. Smart contracts are automated enforceable agreements that can be accessed by anyone with an internet connection and do not require intermediaries to execute.
DeFi refers to applications and peer-to-peer protocols developed on decentralised blockchain networks that do not require access rights for simple lending, borrowing, or trading of financial tools. The Ethereum network is used to build most of DeFi applications today, but many alternative public networks are emerging that provide superior speed, scalability, security, and lower costs.