Decentralized Finance (DeFi) is a financial system built on blockchain technology that aims to create a more transparent, efficient, and accessible financial system. It operates on the principle of removing third parties like banks from financial transactions, empowering individuals with peer-to-peer transactions.

- **Accessibility**: DeFi platforms are open to anyone with an internet connection, providing financial services to the unbanked and underbanked populations.
- **Transparency**: All transactions are recorded on a public blockchain, ensuring transparency and allowing anyone to verify transactions.
- **Security**: DeFi leverages blockchain technology to enhance security, reducing the risk of fraud and unauthorized access compared to traditional financial systems.

DeFi encompasses a broad range of financial services, including lending, borrowing, decentralized exchanges, and more, all facilitated through smart contracts on blockchain platforms like Ethereum.