© The Author(s), under exclusive license to APress Media, LLC, part of Springer Nature 2023
W.-M. LeeBeginning Ethereum Smart Contracts Programminghttps://doi.org/10.1007/978-1-4842-9271-6_13

13. Introduction to Decentralized Finance

Wei-Meng Lee1  
(1)
Ang Mo Kio, Singapore
 

The financial system that we are so familiar with today is known as traditional finance. It is still largely centralized because it still relies on central authorities, predominantly banks and governments. However, traditional finance has several flaws and I will discuss them in this chapter.

In Chapter 2, you learned about the motivations behind blockchain and how it solves the trust issue that people have with central authorities. Using blockchain, we can build a new financial ...

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