Decentralized Finance, or DeFi, refers to a financial ecosystem built on blockchain technology that aims to recreate traditional financial systems in a decentralized manner. This allows users to lend, borrow, trade, and earn interest on their assets without relying on centralized institutions like banks. By utilizing smart contracts, DeFi platforms automate transactions and ensure transparency, security, and accessibility. Users can interact directly with one another, reducing costs and increasing efficiency. The rise of DeFi has opened up new opportunities for financial inclusion, enabling anyone with an internet connection to participate in the global economy.