Decentralized financing is a shift from traditional centralized financial technology that allows peer-to-peer financing toward a more decentralized and permissionless system.
Decentralized financing is provided by a code that runs on a decentralized and distributed infrastructure. In contrast, centralized economic systems are run by exchanges where transactions are moved from one central location to another.
On the contrary, the goal of decentralized financing is to create decentralized finance services using blockchain, smart contracts and consensus mechanisms.