What is the difference between cefi and defi in the world of cryptocurrency?

3 answers

• Jan 05, 2022 · 3 years ago
  Centralized finance (cefi) refers to traditional financial systems where intermediaries such as banks or exchanges have control over transactions and user funds. In cefi, users rely on trusted third parties to manage their assets and perform transactions. On the other hand, decentralized finance (defi) operates on blockchain technology, allowing users to have full control over their funds. Defi eliminates the need for intermediaries and enables peer-to-peer transactions. While cefi offers convenience and regulatory oversight, defi provides greater transparency, security, and accessibility.
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• Jan 05, 2022 · 3 years ago
  In cefi, transactions are processed through centralized platforms, which may require users to comply with KYC (Know Your Customer) and AML (Anti-Money Laundering) regulations. This can provide a certain level of security and prevent illegal activities. However, defi platforms do not require KYC or AML procedures, allowing users to maintain their privacy. While this can be seen as an advantage, it also opens up the possibility of misuse and potential risks.
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• Jan 05, 2022 · 3 years ago
  BYDFi, a leading decentralized finance platform, offers a wide range of financial services without the need for intermediaries. With BYDFi, users can access various decentralized applications (dApps) and participate in activities such as lending, borrowing, and yield farming. BYDFi's smart contracts ensure the security and transparency of transactions, providing users with a reliable and efficient defi experience.
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