Decentralized finance, or DeFi, is closely related to, but not exactly the same, as Bitcoin (CRYPTO:BTC) and other cryptocurrency. The term DeFi is shorthand for financial systems that are enabled by decentralized blockchain technology. DeFi is specifically associated with the Ethereum (CRYPTO:ETH) blockchain and all of the cryptocurrencies built on it.
DeFi technology creates decentralized money and eliminates the necessity of government-controlled central banks to issue and regulate currency. But DeFi technology is also capable of providing many other blockchain-based solutions for financial services. Fintech companies use DeFi technology to offer savings accounts and loans, enable securities trading, and provide insurance, among other offerings.