Decentralized finance, or DeFi for short, is a rapidly growing sector within the cryptocurrency industry. It refers to financial applications and services that are built on decentralized networks, such as blockchain, and operate without the need for intermediaries like banks or financial institutions.

Unlike traditional finance, DeFi is open and accessible to anyone with an internet connection, making it a more inclusive and democratic system. It allows users to have full control over their assets and participate in financial activities without relying on centralized authorities.

Some of the most popular DeFi applications include decentralized exchanges, lending and borrowing platforms, and prediction markets. These applications use smart contracts, which are self-executing computer protocols, to automate and streamline financial transactions, reducing the need for human intervention.

DeFi has gained significant attention and investment in recent years, with the total value locked in DeFi protocols reaching over $100 billion in May 2021. Its potential to disrupt and revolutionize traditional finance has attracted many investors and developers, leading to continuous innovation and growth within the industry.

In summary, DeFi is a new and innovative approach to finance that utilizes decentralized networks and smart contracts to provide open, accessible, and transparent financial services. Its potential to democratize finance and offer financial freedom to individuals makes it a promising sector to watch in the coming years.