DeFi, in other words, is the new trend in the world of crypto assets that provides such services without leveraging the services of banks and brokers. Being based on the decentralised blockchain system, DeFi makes it secure within the usage of smart contracts by which people can provide and borrow money, trade, and explicitly earn touch on their assets.
Certainly, one of the biggest selling points of DeFi is that it is open for everyone. It literally means anyone with access to the internet can participate, which is quite beneficial to the unbanked population in developing countries. DeFi protocols are also associated with high-interest rates than the traditional savings accounts hence encouraging more people into the network.
However, we have seen that DeFi has had its share of issues that come with massive development in the sector: this includes: regulation issues, and other security issues. Many people have suffered data breaches, and virtual theft has meant a lot of people have lost money. However, such risks characterize DeFi’s evolution, which, on the whole, is developing and adds new proposals, aimed at creating a better future for the financial industry, based on decentralization, transparency, and accessibility.