DeFi vs CeFi represent two distinct approaches to financial services. DeFi leverages blockchain technology to provide open, permissionless financial systems, enabling users to trade, lend, and borrow without intermediaries. Conversely, CeFi relies on centralized entities that facilitate transactions, often offering user-friendly interfaces and enhanced customer support. While DeFi promotes transparency and accessibility, CeFi provides a familiar structure with regulatory oversight. Understanding their differences is crucial for navigating the evolving financial landscape.
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