DeFi is an abbreviation of the phrase decentralized finance which generally refers to the digital assets and financial smart contracts, protocols, and decentralized applications (DApps) built on Ethereum. In simpler terms, it’s financial software built on the blockchain that can be pieced together like Money Legos.
Decentralized finance aims to create a financial system that’s open to everyone and minimizes one’s need to trust and rely on central authorities.
Technologies like the internet, cryptography, and blockchain give us the tools to collectively build and control a financial system without the need for central authorities.