Decentralized Finance, often abbreviated as DeFi, refers to a financial system built on blockchain technology that operates without traditional intermediaries like banks. It enables users to lend, borrow, trade, and earn interest on their assets directly through smart contracts, which are self-executing contracts with the terms of the agreement directly written into code. This innovative approach democratizes access to financial services, allowing anyone with an internet connection to participate. By removing intermediaries, DeFi aims to create a more open and transparent financial ecosystem, reducing costs and increasing efficiency for users worldwide.