Lesson 1.1: What is DeFi? Evolution from CeFi to DeFi

✨ Lesson Overview:

In this lesson, you will learn:

• What DeFi (Decentralized Finance) is

• How it evolved from traditional finance (TradFi)

• The key drivers behind DeFi’s rise

• Why DeFi matters to investors today

You’ll leave this lesson with a clear understanding of the revolutionary shift that DeFi represents — and why it’s opening new doors for financial participation around the world.

📖 What is DeFi?

DeFi stands for Decentralized Finance.
It refers to a collection of financial applications built on blockchain technology, designed to operate without banks, brokers, or centralized institutions.

In DeFi:

• Smart contracts (self-executing programs) replace traditional intermediaries like banks or clearinghouses.

• Users have full control over their assets — no need for a bank account.

• Protocols (open-source programs) govern lending, borrowing, trading, investing, and more, transparently and autonomously.

In short:
DeFi = Traditional financial services, rebuilt using blockchain technology, without middlemen.