DeFi or decentralized finance is a movement that aims to create a new financial system that is open to everyone and does not require trusting intermediaries such as banks. To achieve this, defi relies heavily on cryptography, blockchain and smart contracts.

Smart contracts are the key building blocks of defi. If you don't know what smart contracts are or want to brush up on your knowledge, you can pause this video and watch my introductory video on smart contracts first.

Smart contracts explained ► https://youtu.be/pWGLtjG-F5c

It's worth noting that currently most, if not virtually all, defi projects are built on Ethereum. The main reason for this is Ethereum's quite robust programming language, called Solidity, which allows writing advanced smart contracts that can contain all the necessary logic for the defi applications. In addition, Ethereum has the most developed ecosystem among all smart contract platforms with thousands of developers building new applications every day and most of the value is locked in smart contracts that create an additional network effect. In fact, all the defi protocols mentioned in this video are built on Ethereum.

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