At its core, DeFi refers to a financial system that operates on blockchain technology, aiming to recreate traditional financial services, such as lending, borrowing, trading, and more, in a decentralized and permissionless manner. Unlike traditional finance, which relies on intermediaries like banks and financial institutions, DeFi platforms use smart contracts to automate processes, reducing the need for centralized authorities.
Smart contracts are hosted and executed on a distinct computer network known as a blockchain, such as Ethereum. This ensures that all aspects are accessible, secure, and unalterable. Smart contracts autonomously impose rules and stipulations without requiring human intervention. Smart contracts refer to software applications designed to facilitate the creation, verification, and implementation of contractual agreements. They make use of a sophisticated method known as blockchain to carry out their tasks. This cutting-edge technology enables them to carry out their tasks with a high degree of safety and efficiency.
Blockchain technology is being used to distribute the financial market, rather than keep it in the control of a few major companies. How about the same concept with Artificial Intelligence so that it can deliver the values in a plug and play mode i.e As a Service technique. Any new startup if require or wants can just plug and play this service to get benefits rather then leaving it just few big hands.
Blockchain and Distributed Ledger Technology in 2025: Transforming Trust, Transparency, and Transactions
In 2025, blockchain technology had transcended its origins as a cryptocurrency infrastructure and had become the cornerstone of a new era in finance. Its transformative impact on secure and transparent transactions, streamlined settlement processes, and the creation of digital assets was undeniable. Financial institutions and fintech companies had embraced blockchain’s potential, reshaping the industry’s landscape.
To understand the profound implications of blockchain technology in non-financial sectors, we must first grasp its foundational principles. Blockchain is a decentralized, distributed ledger that records transactions across multiple computers in a way that ensures security, transparency, and immutability. It was initially devised as the technology underpinning Bitcoin by the pseudonymous individual or group known as Satoshi Nakamoto.