What is the term for financial services built on blockchains without traditional intermediaries?

Financial services built on blockchains without traditional intermediaries are collectively called decentralized finance, or DeFi.

DeFi applications commonly use smart contracts to provide functions associated with banking and capital markets. These can include lending, borrowing, trading, derivatives, and yield-generating activities. Users generally interact through cryptocurrency wallets rather than opening accounts with a conventional bank.

Ethereum became the best-known platform for early DeFi applications because its smart-contract system supported programmable financial agreements. Other blockchains later developed their own DeFi ecosystems. The sector includes decentralized exchanges, lending protocols, stablecoin systems, and automated market makers.

“Decentralized” does not always mean that every part of a project is fully distributed. Some applications rely on centralized development teams, administrative keys, or external data providers. DeFi also carries risks including software bugs, market volatility, liquidity shortages, and scams, so the label describes an operating model rather than a guarantee of safety.