What falls under DeFi?

DeFi, short for Decentralized Finance, is revolutionizing the world of financial transactions. It encompasses a broad spectrum of financial services, ranging from straightforward to intricate operations.

Two of the most prominent cryptocurrencies that underpin DeFi transactions are Bitcoin (BTC) and Ethereum (ETH). BTC, the pioneer of digital currencies, provides a secure and decentralized platform for value exchange.

Meanwhile, Ethereum (ETH) extends the capabilities of blockchain technology by enabling smart contracts. Smart contracts automate the execution of transactions, reducing the need for intermediaries and increasing efficiency.

At the core of DeFi lies decentralization, which eliminates intermediaries and promotes peer-to-peer interactions. This paradigm shift empowers users to have greater control over their financial assets.

Facilitating these transactions are decentralized applications, known as "dapps." These applications are built on blockchain technology and operate autonomously, without relying on a central authority.