What DeFi Is and Why It Matters

Decentralized Finance, or DeFi, is a set of financial applications built on blockchain networks that lets people lend, borrow, trade, save, and move value without relying on a single traditional intermediary.

In this lesson, Professor Chloe Vincent introduces the core idea behind DeFi, explains how it differs from banks and brokerages, and outlines why it matters for access, transparency, and innovation. You will also learn the basic building blocks of DeFi and the main trade-offs to keep in mind before using any protocol.