DeFi is an open and global financial system built for the internet age – an alternative to a system that’s opaque, tightly controlled, and held together by decades-old infrastructure and processes. It gives you control and visibility over your money. It gives you exposure to global markets and alternatives to your local currency or banking options. DeFi is a collective term for financial products and services that are accessible to anyone who can use Ethereum – anyone with an internet connection. With DeFi, the markets are always open and there are no centralized authorities who can block payments or deny you access to anything. Services that were previously slow and at risk of human error are automatic and safer now that they’re handled by code that anyone can inspect and scrutinize. Anyone can program logic into payments. So you can get the control and security of Bitcoin mixed with the services provided by financial institutions. This lets you do things with cryptocurrencies that you can’t do with Bitcoin like lending and borrowing, scheduling payments, investing in index funds and more.
Some people aren’t granted access to set up a bank account or use financial services.
Lack of access to financial services can prevent people from being employable.
Financial services can block you from getting paid.
A hidden charge of financial services is your personal data.
Governments and centralized institutions can close down markets at will.
Trading hours often limited to business hours of specific time zone.
Money transfers can take days due to internal human processes.
There’s a premium to financial services because intermediary institutions need their cut.