Imagine a world with no middleman between your favourite chocolate and you. Once it gets out of the machine that wraps it, it lands straight in your room. No additional cost to make the price too high, no time wasted sending it from the warehouse to the retailer. Exciting isn't it?
That's somewhat like decentralized finance.
Decentralized finance (DeFi), as defined by Investopedia is "an emerging financial technology based on secure distributed ledgers similar to those used by cryptocurrencies. The system removes the control banks and institutions have on money, financial products, and financial services."
DeFis simply removes any form of control or autonomy any institution has on your finances.
The advantages?
You hold your money in a more secure wallet, as opposed to the insecurity threats centralized banks breed.
It eliminates the ridiculous extra fees centralized banks charge
You don't need a cashier or bank manager to approve your financial transactions.
Your transactions can be carried out in seconds.
With centralized finance, banks are always seeking for ways to make gains from every little transaction you make through their bank. From using your ATM card, to making a deposit, banks always deduct money. These money when accrued turns out to be a lot.
With decentralized finance, we break all of these barriers