CeFi and DeFi - Differences

Centralized Finance - CeFi

CeFi refers to traditional finance where users trade crypto over a platform on which they basically trust the agency and other users.

Advantages of CeFi

• Transaction processing efficiency

• More trading pairs

Disadvantages of CeFi

• High transaction fees

• Lack of privacy

• Lack of transparency

• Lack of absolute control over funds

ONTO supported CeFi dApps:

• Babel

• FBGone

• …

Decentralized Finance - DeFi

DeFi is a new development in the crypto world that manifests in the form of fully decentralized blockchain applications that take third party institutions out of the picture. The users trust the exchange protocol instead of the agency.

Advantages of DeFi

• Fully automated

• Universally accessible

• Greater degree of system interoperability

Disadvantages of DeFi

• Relatively lower liquidity

• Project scalability

• Lower tolerance for human operational error

ONTO supported DeFi dApps:

• 1inch

• MakerDAO

• Compound

• Uniswap

• ……