DeFi stands for Decentralized Finance. DeFi has long been existing with Bitcoin, it only became popular when it was built on the Ethereum Blockchain.
First, there is Bitcoin, a cryptocurrency, created by an unknown person or group of persons that goes by the name Satoshi Nakamoto. Bitcoin was created as a reward for a process known as mining. Eventually, other cryptocurrencies follow suit, like Namecoin and Litecoin. Then someone thought of recording all the transactions digitally in a ledger, publicly, thus, paving the way for Blockchain existence.
In opposition to traditional finance, DeFi is a system of financing where digital banking services are made minus the middleman. All transactions are made public without any permission to any entity or authority.
When it comes to DeFi tokens/coins, these are financial applications running on blockchains that mirror concepts successfully used in traditional banking and finance, such as stocks. There are many kinds of DeFi tokens but we will discuss and review a few tokens which have and can show great potential to trend in 2021.