On-Chain Financial Infrastructure

Definition ∞ On-chain financial infrastructure refers to the foundational set of protocols, smart contracts, and decentralized applications that enable financial services directly on a blockchain network. This infrastructure includes elements for lending, borrowing, trading, and asset management, all operating transparently and immutably. It provides the essential components for a permissionless financial system. This system removes the need for traditional intermediaries.
Context ∞ The development of robust on-chain financial infrastructure is a primary driver of innovation in decentralized finance. News often highlights advancements in scalability, security, and interoperability of these underlying systems. Discussions also concern the regulatory treatment and potential societal impact of a fully decentralized financial ecosystem.