Web3 Finance

Definition ∞ Web3 Finance refers to financial services and applications built on decentralized blockchain technology, operating without central intermediaries. This sector encompasses a broad array of decentralized financial products, including lending, borrowing, trading, and asset management, all powered by smart contracts and distributed ledgers. It prioritizes user ownership, transparency, and permissionless access, contrasting with traditional financial systems. Web3 Finance aims to create a more open, equitable, and efficient global financial infrastructure.
Context ∞ Web3 Finance is a rapidly expanding domain frequently discussed in cryptocurrency news, representing the evolution of decentralized finance into a more comprehensive and interconnected financial ecosystem. Discussions often center on regulatory challenges, scalability solutions, and the ongoing integration of real-world assets into these decentralized frameworks. The potential for Web3 Finance to reshape global economic interactions remains a significant area of innovation and investment.