DeFi vs CeFi
DeFi (Decentralized Finance) vs. CeFi (Centralized Finance) – a quick comparison:
DeFi, short for Decentralized Finance, represents a new era of financial services built on blockchain technology. It's decentralized, meaning it operates without traditional intermediaries like banks. Users have more control and can access DeFi services globally.
CeFi, or Centralized Finance, follows the traditional financial model. It relies on intermediaries like banks and financial institutions for services. CeFi offers familiarity and regulatory protection but may lack the innovation and accessibility found in DeFi.
In summary, DeFi offers decentralization and innovation but comes with risks. CeFi provides familiarity and security but may be less adaptable. Both have their place in the evolving financial landscape.