Today, more or less everything is digital - and that even includes conventionally analog fields, such as finance. A few decades ago, the traditional finance field looked more or less like it had always done. However, innovations in technology, payment processors, and applications have now made it possible for centralized finance (CeFi) and decentralized finance (DeFi) solutions to offer the same services historically offered within traditional finance. Sometimes it can be challenging to get your head around the differences between CeFi vs DeFi, and how these differ from traditional finance (sometimes known as TradFi). However, fear not - we are here to help explain traditional finance and CeFi vs DeFi!

In this article, we’ve broken down these three common forms of financial infrastructure. Furthermore, we discuss the pros and cons of each while looking at the many crossovers that occur between them. We explore how CeFi vs DeFi applications may not be competing but...