Blockchain for Teens: With Case Studies and Examples of Blockchain Across Various Industries

© The Author(s), under exclusive license to APress Media, LLC, part of Springer Nature 2023

B. Wu, B. WuBlockchain for Teenshttps://doi.org/10.1007/978-1-4842-8808-5_8

8. Decentralized Finance (DeFi): Reinventing Financial Services

Brian Wu¹   and Bridget Wu¹

(1)

Livingston, NJ, USA

 

The global financial system consists of many institutions, such as banks, insurance companies, stock exchanges, and various governmental agencies that regulate these institutions. The traditional finance service is centralized. Central authorities issue the currency and control the supply and distribution of money that fuels the economy. Centralized financial institutions manage the assets and carry out transactions through the centralized system to reduce fraud. However, ...