DeFi is short for “decentralized finance,” an umbrella term for a variety of financial applications in cryptocurrency or blockchain geared toward disrupting financial intermediaries.
DeFi utilizes the power of Blockchain as decentralization and transparency to create an open finance. In it, everyone can access and use it anywhere, anytime without being influenced by any centralized individual or organization.
The biggest difference between traditional finance and decentralized finance is Custodial. In traditional finance, there are intermediaries with centralized power in organizations, markets and financial tools. Meanwhile, DeFi leverages Blockchain's power of transparency and decentralization to eliminate these intermediaries.
DeFi eliminates centralized management intermediaries. This is very clear, as I analyzed above. With the adoption of Blockchain technology, the elimination of intermediaries becomes clear. User can know where his property is or what state.
DeFi applications are built on top of blockchains, they are open source. Therefore, it is relatively easy to upgrade or build and develop many DeFi applications.