What is decentralised finance?

Decentralised finance (DeFi) is the use of smart contracts on a blockchain to create new financial products and services. In DeFi, there is no need for a central authority to approve or enforce contracts. This allows for more efficient, transparent and secure transactions. Some of the most popular DeFi applications include decentralized exchanges, prediction markets and stablecoins. Decentralized exchanges allow users to trade tokens without having to trust a third party. Prediction markets allow users to bet on the outcome of events, while stablecoins are cryptocurrencies that are pegged to traditional currencies like the US dollar or euro. This allows users to store their value in cryptocurrencies without worrying about price volatility.