This maybe an unfamiliar terms to some of us, but the name is creating a buzz in the crypto world and in the financial market. DeFi draws inspiration from blockchain, the technology behind the digital currency bitcoin, which allows several entities to hold a copy of a history of transactions, meaning it isn’t controlled by a single, central source.
That’s important because centralized systems and human gatekeepers can limit the speed and sophistication of transactions while offering users less direct control over their money.
DeFi is distinct because it expands the use of blockchain from simple value transfer to more complex financial use cases.
This is being looked into as the most convenient way of money transfer in the future as it is removing any middle man or payment institution to be charging enormous amount of surcharges.