Modules(by Inorbit)
🎓

Introduction to DeFi

Master the fundamentals of Decentralized Finance and understand how Arbitrum enhances the DeFi ecosystem

Beginner • 2-3 hours
8 sections
Progress0%

Chapter Sections

Completed:0/8

What is DeFi?

theory•15 min•Section 1 of 8
In Progress

Understanding Decentralized Finance (DeFi)

Decentralized Finance represents a revolutionary shift from traditional, centralized financial systems to peer-to-peer finance enabled by blockchain technology. Let's explore what makes DeFi transformative.

What is DeFi?

DeFi (Decentralized Finance) refers to a financial ecosystem built on blockchain technology that eliminates the need for traditional financial intermediaries like banks, brokerages, or exchanges. Key Characteristics: • **Decentralized**: No single point of control or failure • **Permissionless**: Open to anyone with an internet connection • **Transparent**: All transactions are publicly verifiable on the blockchain • **Composable**: DeFi protocols can be combined like building blocks • **Global**: Accessible 24/7 from anywhere in the world Unlike traditional finance, DeFi operates through smart contracts - self-executing contracts with terms directly written into code.
1 of 3
🎯

Key Takeaways

  • ✓DeFi eliminates traditional financial intermediaries through blockchain technology
  • ✓Smart contracts automate financial processes without human intervention
  • ✓DeFi operates 24/7 globally with complete transparency
  • ✓Users maintain custody of their assets while accessing financial services
  • ✓Composability allows building complex financial products from simple building blocks
📚

Additional Resources

🛠️
DeFi Pulse - DeFi Rankings
tool
📖
Ethereum.org DeFi Guide
documentation
Estimated time: 15 min
1 / 8

Chapter Glossary

💡DeFi

Decentralized Finance - A financial ecosystem built on blockchain technology that eliminates traditional intermediaries like banks and brokers.

💡Smart Contract

Self-executing contracts with terms directly written into code, running on blockchain networks without need for intermediaries.

💡Wallet

A digital tool that stores cryptocurrency and enables interaction with blockchain applications. Can be hot (online) or cold (offline).

💡Gas

The fee required to perform transactions or execute smart contracts on blockchain networks like Ethereum.

💡Layer 2

Scaling solutions built on top of blockchain networks to increase transaction speed and reduce costs while maintaining security.