Decentralized Finance

Decentralized Finance: Understanding the Future of Financial Systems

This module introduces you to the transformative world of Decentralized Finance (DeFi), exploring how blockchain technology is reshaping financial systems. It provides a foundational understanding of DeFi—from the basics of Web3 ownership to the architecture and governance structures that enable trust-minimized, programmable financial products. This module is purely educational and does not provide investment advice.

We begin with DeFi 101, explaining the core concepts, history, and key metrics that define the ecosystem. You’ll learn how DeFi replaces traditional intermediaries like banks with software-based solutions, and how these changes create new opportunities and challenges in the financial landscape.

From there, the module explores the technology stack that powers DeFi. Topics include oracles, layers, decentralized governance, DAOs, and the non-custodial infrastructure that allows for open, composable, and programmable financial services. You’ll see how these components interact to create a resilient, transparent, and global financial system.

The module also covers digital assets, including the distinctions between currencies and tokens, the stability mechanisms behind stablecoins, and how DeFi differs from Central Bank Digital Currencies (CBDCs). You’ll examine strategies for achieving stability, trust-minimized operation, and innovative settlement models.

Finally, the module outlines the defining traits of DeFi within financial services, emphasizing open architecture, programmable functionality, and the potential to transform how money moves and is managed globally.

By the end, you’ll gain a clear understanding of how DeFi operates, the technology that drives it, and how it may influence the financial products of the future—equipping you with the knowledge to navigate this profound shift in the global financial system.

Includes: Decentralized Finance Glossary, NFT Tokens Glossary, External Policy Paper Library, Jargon and Investing Terminology