The Rise of DeFi: How Decentralized Finance Is Changing the Economy

Breaking the Chains of Traditional Banking: What Does DeFi Really Mean?

In a world still dominated by banks, intermediaries, and bureaucracy, decentralized finance, or DeFi, is quietly changing the rules. The core notion is simple but radical: eliminate the gatekeepers. DeFi, based on blockchain technology, enables users to borrow, lend, trade, and earn interest without relying on centralized institutions.

But what is DeFi, exactly? At its core, it is a network of financial apps that run on public blockchains such as Ethereum and are available to anybody with an internet connection and a cryptocurrency wallet.

According to a ConsenSys research, DeFi’s Total Value Locked (TVL) increased from less than $1 billion in 2019 to more than $100 billion by 2025. The rapid speed of innovation, along with increased user interest, indicates a move from speculative buzz to mainstream momentum.