DeFi vs Traditional Finance: One Goes on Vacation the Other Doesn't
The difference between the decentralized finance and the traditional finance is pretty obvious now and in as much it doesn’t call for debates there are still some people who would still prefer to debate on the issue choosing traditional finance over decentralized finance. So I will be giving a detailed difference on the difference between decentralized finance and traditional finance and it’s going to be in a simple way for easy understanding.
Differences
| Decentralized Finance | Traditional Finance |
|---|---|
| Decentralized finance does not require government authorization or third party permission to function it's simply permissionless | While traditional finance requires permission from bodies governing financial services and acquiring licenses and they are restricted from so many activities and limited to how they can perform transactions. |
| Anyone developer or programmer that has high skills can come up with a decentralized financial system and that’s why there have been countless of DeFi services, and apps and it has given room to scammers too due to its transparency. | Traditional finance is less transparent, it’s difficult for anyone to come up with their own traditional finance system without passing through the proper channel and acquiring a specific license |
| The beauty about decentralized finance is that everyone can see what’s going on public both in decentralized market and blockchain you can monitor trends and your assets | traditional finance isn’t something you can monitor because you either have to ask for a statement of accounts to track the record of your funds or assets or you have to wait for some days for permission before your transaction can pull through. This brings us to… |
| Decentralized finance is faster and more secure | traditional finance needs to overcome certain boundaries and acquire certain privileges or permission to conduct some transactions. |
| In terms of vulnerability, decentralized finance is far better than traditional finance | traditional finance is often quick to maintenance suspending activities to fix bugs or break down due to little or no crisis. |
| Decentralized finance mostly deals on cryptocurrencies | while the traditional deals on fiat which are riskier to handle than crypto |
| Decentralized finance don’t take breaks to figure out their next step or take holidays to rest | Traditional finance does |
Summary
Despite the debate and differences between the traditional finance and decentralized finance they both deal on finance and we need them for our everyday living and however, the traditional finance is what stills controls the economy.
Incase I miss out on any major difference you can also add up or correct me if I'm wrong in some listed above. Thanks 🤗
Posted Using LeoFinance Beta
https://twitter.com/Sweetboydave2/status/1553911591715880961
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