Just Facts, No Hype: The Beginner’s Guide To DeFi

Over the last decade, financial services have seen rapid innovation. Not only do you have digital wallets to pay for anything you want, but you can also quite conveniently send instant cross-border payments. Anything is possible. However, every transaction still needs multiple approvals, identity verification, and multiple processes that add to cost and time.

This is where DeFi (decentralized finance) shines. As of 2025, billions of dollars are transacted every single day across DeFi platform networks using Ethereum, Arbitrum, and Solana.

Not everyone is comfortable using crypto because people still have trouble understanding how exactly DeFi works, what problems it solves, and the risks involved in using it. To all those who are intimidated by crypto or feel sceptical, here is a basic guide to help you understand what DeFi is and cut through the hype to discover what it isn’t.

Whether you are hearing about it for the first time or have had it in your mind, DeFi is here to stay. If you want to figure out how DeFi can be used in your financial transactions, stick around and find out.

What is DeFi?

DeFi, pronounced as “Dee-fee,” is an emerging alternative that uses blockchain technology to offer financial services without the need for any middlemen or…