Decentralized Finance, or DeFi, is transforming the traditional financial system by removing intermediaries like banks and brokers through the use of blockchain technology. Built primarily on networks like Ethereum, DeFi platforms enable users to lend, borrow, trade, and earn interest on digital assets in a peer-to-peer manner. Smart contracts power these applications, automating transactions and enforcing rules without the need for centralized control. The appeal of DeFi lies in its accessibility, transparency, and potential for higher returns—especially in regions underserved by conventional banking systems. However, with innovation comes risk: security vulnerabilities, regulatory concerns, and volatile markets remain key challenges. Despite these hurdles, DeFi represents a bold step toward a more open, inclusive, and programmable financial future.