The idea behind decentralized finance, or DeFi, is to develop a distinct monetary system that is accessible to everyone and does not depend on credible middlemen like financial institutions. DeFi relies heavily on the blockchain, cryptographic protocols, and encryption to enable this. Smart contracts are the main components of DeFi. The only organization that even comes close to disrupting the current banking system is DeFi. DeFi smart contracts, unlike other credit intermediaries, are established on current tech tracks instead of relying on obsolete methods and techniques.