What is decentralized finance (DeFi)?

Decentralized finance—often called DeFi or open finance—refers to the economic paradigm shift enabled by decentralized technologies, particularly blockchain networks. DeFi signals the shift from a historically centralized and closed financial system toward a universally accessible economy that is based on open protocols that are interoperable, programmable, and composable. From streamlined and secure payment networks to automated loans to USD-pegged stablecoins, decentralized finance has emerged as one of the most active sectors in the blockchain space.