Decentralized finance (DeFi) Decentralized finance (DeFi) refers to the world of digital assets that are traded in a decentralized manner, without a central bank or other financial institution. It’s analogous to the traditional financial system, but without a centralized banking system. So, what does this mean for consumers and businesses? Let’s take a look at some of the biggest differences between DeFi versus traditional finance: DeFi stands for decentralized finance. Decentralized finance (DeFi) is a new way of managing your money. It’s different from the traditional financial system because it does not work with banks or other centralized institutions. Instead, DeFi relies on computers and algorithms to keep track of transactions in a network of computers around the world—a decentralized network. DeFi projects allow you to create your own digital currency or token and use it to make payments using smart contracts, which are computer programs that automatically execute when certain conditions are met....