Decentralized finance (DeFi) is a financial system built on top of blockchain technology that allows for the creation of decentralized, open-source financial applications. It enables peer-to-peer financial transactions without the need for intermediaries, such as traditional banks and financial institutions. These transactions are recorded on a public ledger, usually a blockchain, that is transparent and accessible to anyone. This allows for the creation of a more inclusive, accessible, and transparent financial system. DeFi applications can include lending, borrowing, trading, insurance, and more.