Decentralized Finance (DeFi) enables innovative financial services by leveraging blockchain technology to eliminate intermediaries. This paradigm shift allows users to engage in activities such as lending, borrowing, and trading directly through smart contracts on decentralized platforms. DeFi promotes greater financial inclusion, as it provides access to financial services for individuals without traditional banking infrastructure. Additionally, it enhances transparency and reduces fees compared to traditional finance. However, users must also navigate associated risks such as smart contract vulnerabilities and market volatility.