{"id":4457,"date":"2022-07-02T06:19:37","date_gmt":"2022-07-02T06:19:37","guid":{"rendered":"https:\/\/unremot.com\/blog\/?p=4457"},"modified":"2022-07-02T06:19:37","modified_gmt":"2022-07-02T06:19:37","slug":"defi-vs-cefi","status":"publish","type":"post","link":"https:\/\/unremot.com\/blog\/defi-vs-cefi\/","title":{"rendered":"Defi vs Cefi | Decentralized Finance VS Centralized Fiance"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">New to the concept of decentralized finance? In this blog, we deep dive into the difference between Defi vs Cefi. Understand the differences with examples, use cases and features. Let&#8217;s begin!<\/span><\/p>\n<h2><b>Defi vs Cefi<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Cryptocurrencies were invented with the intent of decentralizing the financial trading system. Decentralized Finance (Defi) is built as an open-source, permissionless, and transparent financial service ecosystem. Centralized finance CeFi is a type of financial practice within the cryptocurrency sphere where users can interest and get loans through centralized platforms.\u00a0<\/span><\/p>\n<h2><b>What does Defi mean?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Let us begin with, what does Defi mean? Decentralized finance or Defi is an emerging financial technology based on secure distributed ledgers. The system removes the monopolies of centralized financial institutions (banks and financial institutions) have on money, financial products, and financial services. Defi is a global, peer-to-peer, pseudonymous system that is open to everybody. Defi finance aims to create a more open, free, and fair financial system, accessible to anyone with an internet connection.<\/span><\/p>\n<h2><b>What are Defi tokens?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The Defi ecosystem is an interconnected system of non-custodial protocols, platforms, and services. You can use Defi tokens to access financial services like loans, lending, and insurance. Defi tokens are coins that are a part of automated, decentralized networks and use <a href=\"https:\/\/ethereum.org\/en\/glossary#smart-contract\" target=\"_blank\" rel=\"noopener\">smart contracts<\/a> to operate. Users can use the tokens to access financial services built on blockchain. Defi tokens command a $114 billion market cap.<\/span><\/p>\n<p style=\"text-align: center;\"><strong>Also read:\u00a0<a href=\"https:\/\/unremot.com\/blog\/list-of-smart-contract-platforms\/\">8 best list of smart contract platforms<\/a><\/strong><\/p>\n<h2><b>What is Defi pulse?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Defi Pulse Index (DPI) is an ERC-20\u00a0 token that can track the performance of tokens within the Defi industry. Defi Pulse aims to facilitate exposure to Defi through one single asset. It tracks Defi projects that have a significant usage with a commitment to maintenance and ongoing development within the Defi community. DPI is not a synthetic asset, holders can swap DPI for tokens that comprise the capitalization-weighted index.<\/span><\/p>\n<h2><strong>What is Cefi?<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">What is Cefi? Cefi or Centralized finance offers some of the benefits of <\/span><span style=\"font-weight: 400;\">decentralized finance and the security of traditional financial service <\/span><span style=\"font-weight: 400;\">products. In Cefi all crypto trading orders are routed through a centralized exchange. The Cefi exchange manages the money. You do not have access to your wallet because you do not have a private key. Exchanges select the currencies available for trading and the fees that need to be paid to trade on their platform.\u00a0<\/span><\/p>\n<h3><b>What are CeFi tokens?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Cryptocurrency exchanges are platforms for buying, selling, and trading cryptocurrencies and are an integral part of the blockchain platform. Centralized finance tokens are digital assets that are native to the cryptocurrency exchange. Top CeFi tokens are,<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">BNB<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Cronos<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">UNUS SED LEO<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">FTX Token<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">KuCoin Token<\/span><\/li>\n<\/ul>\n<p style=\"text-align: center;\"><strong>Also read:\u00a0<a href=\"https:\/\/unremot.com\/blog\/best-metaverse-platforms\/\">9 Best Metaverse platforms everyone should know about<\/a><\/strong><\/p>\n<h2><b>Defi use cases<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Defi ecosystem is exciting, with new activities and projects being announced regularly. Some of the top Defi use cases are,<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Borrowing and lending \u2013 Defi lending and borrowing are very popular. Crypto investors lend cryptos to earn passive in Defi. Most loans in Defi are through smart contracts with the borrower giving higher collateral than the borrowed value.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Deexes\u2013 Decentralized exchanges or Dexes are smart contracts that allow users to sell, buy, or trade cryptocurrencies or tokens. Deexes run on the Ethereum blockchain and the exchanges operate without a central authority. Smart contracts enforce the Defi regulations, execute a trade, and handle funds when required.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Defi platform Assets\u2013 Tokenized assets and asset management is a fast-growing sector in Defi. Existing financial assets deployed to the blockchain as tokens fit into the Defi protocol, increasing their utility.\u00a0<\/span><\/li>\n<\/ul>\n<h2><b>Use cases for CeFi<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Some use cases for CeFi are,<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Coinbase \u2013 With over 56 billion users, Coinbase is the leading cryptocurrency exchange.\u00a0 The exchange offers a range of products such as a trading platform and a wallet for retail investors.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Binance \u2013 Binance is a leading cryptocurrency exchange with its service available in 80 countries. It has a strong focus on altcoin trading and offers trading in more than 500 cryptos and virtual tokens.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">\u00a0Hodlnaut provides financial services to investors and cryptocurrency enthusiasts. It is one leading crypto lending in Asia.<\/span><\/li>\n<\/ul>\n<h2><b>Features of Defi<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Decentralized Finance has changed the conventional notions regarding finance, using cryptocurrency and decentralized blockchain for the management of financial transactions. Features of Defi are \u2013<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><strong>Permissionless<\/strong> &#8211; Defi follows the open and permissible access model. Anyone with an internet connection and crypto wallet.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><strong>Programmability <\/strong>&#8211; Most Defi solutions are on the Ethereum network.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><strong>Transparency<\/strong> &#8211; Transparency is a core feature of the Defi ecosystem.\u00a0 Every transaction is broadcast to the users in the network. All users should verify the transactions broadcast to them. Ethereum addresses are encrypted ensuring anonymity. Defi apps use open-source code any user can view, audit, and develop the existing code.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><strong>Immutability<\/strong> &#8211; Defi revolution has ensured financial inclusion for everyone. People using Defi blockchain need assurance that data will not be compromised. Defi technologies use blockchain technology to ensure the data is secure and immutable.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><strong>Interoperability<\/strong> &#8211; A key characteristic of Defi is interoperability. Since most Defi applications are Ethereum it ensures protocols and applications can complement one another. Developers can create solutions or add functionalities on top of existing protocols.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><strong>Non-custodial<\/strong> &#8211; Users have complete control over their assets and personal data. Users can use web3 wallets to interact with permissionless financial protocols and applications. Defi solutions promote a new age of financial services tailored for the customer.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: center;\"><strong>Also read:\u00a0<a href=\"https:\/\/unremot.com\/blog\/best-web3-wallet\/\">10 Best web3 wallet | Price, Safety, Features<\/a><\/strong><\/p>\n<h2><b>Features of CeFi<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Features of CeFi are,<\/span><\/p>\n<h3><span style=\"font-weight: 400;\"><strong>1. Centralized exchange<\/strong> <\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Users can send funds to the central exchange to manage the funds through an internal account. The funds are stored within the exchange and are kept outside the user\u2019s custody, and are vulnerable to threats in case the exchange\u2019s security measures fail.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\"><strong>2. Flexibility of Fiat conversion<\/strong> <\/span><\/h3>\n<p><span style=\"font-weight: 400;\">You need a centralized exchange when conversing between fiat and cryptocurrencies. Onboarding customers into the CeFi finance ecosystem are convenient.<\/span><\/p>\n<h3><strong>3. Cross-chain services\u00a0<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\"> CeFi services support trading LTC, XRP, BTC, and other coins issued on independent blockchain platforms. CeFi gets custody of funds from multiple chains. Many frequently traded and highest market cap coins exist on independent blockchains and do not have interoperability standards.<\/span><\/p>\n<h3><b>How does Defi work<\/b><span style=\"font-weight: 400;\">?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">How does Defi work? Defi uses cryptocurrencies and smart contracts to provide services eliminating the need for intermediaries. In the conventional financial world, financial institutions act as guarantors of transactions. Financial institutions are powerful because your money is routed through them. In Defi, smart contracts replace financial institutions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A smart contract is a type of Crypto account that can hold funds and send\/refund them based on conditions laid out in the contract. Once live, the smart contract cannot be altered and will run as programmed. Contracts are public and can be inspected and audited by anyone. Bad contracts often come under the community\u2019s scrutiny quickly.<\/span><\/p>\n<h3><b>How does CEFI lending work?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">You can use CeFi to borrow and lend money. But how does CeFi<\/span><\/p>\n<p><span style=\"font-weight: 400;\">lending work? Collateralized Crypto loans typically require less paperwork than traditional bank loans. CeFi makes it possible to borrow money against your crypto holdings, the same way you need collateral to apply for a loan.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The CeFi lending platform has an underrated and underutilized potential<\/span><\/p>\n<p><span style=\"font-weight: 400;\">and can give returns of 10%. There are many CeFi lending platforms and some lending platforms are location specific. Before lending, you need to think about,<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Which tokens will you lend?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">How much will you lend?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Where are you located?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Which currency receives the most interest?<\/span><\/li>\n<\/ul>\n<p style=\"text-align: center;\"><strong>Also read:\u00a0<a href=\"https:\/\/unremot.com\/blog\/best-ethereum-wallets\/\">Top 10 best ethereum wallets | Detail Explanation<\/a><\/strong><\/p>\n<h2><b>Examples of Defi<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Examples of Defi are,<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Totle is an aggregator of decentralized liquidity with price automation.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Augur is a decentralized prediction market.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Nexus Mutual is a decentralized insurance tool.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Kyber is a decentralized exchange<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Maker Dao is a decentralized stable coin minting and lending tool<\/span><\/li>\n<\/ul>\n<h2><b>Examples of CeFi exchanges<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Examples of CeFi exchanges are,<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Coinbase is a cryptocurrency exchange that offers various services such as trading, borrowing, margin trading, native stable coin, and lending.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Fairlay is a Bitcoin Prediction Market and Exchange.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">BlockFi is a cryptocurrency flat borrowing and lending platform.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Celsius is a cryptocurrency flat borrowing, payment, and lending platform.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Ledn is a global financial infrastructure and cryptocurrency layer.<\/span><\/li>\n<\/ul>\n<h2><b>Defi vs. CeFi comparison<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Defi and CeFi platforms encourage people to use blockchain and digital currency. Both platforms provide various crypto-based financial services. If we make the Defi vs. CeFi comparison, they have different approaches. Defi users trust the technology will perform as proposed to execute services, while CeFi users trust the business\u2019s people to manage <\/span><span style=\"font-weight: 400;\">funds and execute the business\u2019s service.<\/span><\/p>\n<h3><b>1. Defi verification vs. CeFi verification<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">If we compare Defi verification vs. CeFi verification methods \u2013 In Defi the transactions are recorded on blocks and are verified by other users. Once the transaction is verified and ratified the transaction, the block is closed and encrypted. It uses smart contracts and blockchain technology to eliminate the need for intermediaries. CeFi act as intermediaries to manage crypto transactions and activities of users.<\/span><\/p>\n<p style=\"text-align: center;\"><strong>Also read:\u00a0<a href=\"https:\/\/unremot.com\/blog\/how-to-create-erc20-token\/\">How to create erc20 token? | Step-by step guide<\/a><\/strong><\/p>\n<h3><b>2. Defi fiat vs. CeFi fiat<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">If we compare Defi fiat and CeFi fiat we learn that when it comes to converting money to Bitcoin or any other cryptocurrency centralized finances have a lot more flexibility. Because fiat to cryptocurrency conversion requires a centralized institution, most Defi services do not provide fiat on-ramps. Customers can be onboarded faster in CeFi.<\/span><\/p>\n<h3><b>3. Cross Chain service<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The traditional blockchain system is a siloed structure preventing two non-native blockchains from interacting. Cross-chain services enable interoperability across independent blockchains to interact and exchange data. Because of the inherent complexity of the system, Defi did not permit cross-chain services. But new cross-chain Defi technology allows for multi-chain smart transactions, helping in interoperability. CeFi by default offers cross-chain services. CeFi gets custody of coins from multiple chains.<\/span><\/p>\n<h3><b>4. Inflation<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Inflation is defined as the depreciation of an existing currency supply because of the addition of a new currency supply. Central banks retain the capacity to create fiat money in CeFi, and inflation is frequently measured against the consumer price index. The asset supply of different cryptocurrencies is subject to alteration in the Defi universe. Bitcoin (BTC) is likely to run into a scenario where supply has a set limit, but still the business output it needs to support does not, resulting in a price collapse.<\/span><\/p>\n<h3><b>5. Defi privacy vs CeFi privacy<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">If we examine the difference between Defi privacy and CeFi privacy \u2013 Defi apps are on smart contracts and offer a high degree of privacy, while Cefi exchanges have a right to reveal the wallet address of the user.\u00a0 Many Defi applications are managed by anonymous teams. The miners execute Defi smart contract as per the terms of the contract, once the contract was installed.\u00a0 While Cefi users need to complete KYC procedures, they have to share information or deposit money before accessing services.<\/span><\/p>\n<h3><strong>6. Defi risk vs CeFi risk<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">If you want to compare Defi risk vs\u00a0 CeFi risk, Defi is riskier than CeFi. Defi promise to be an automated, transparent, and decentralized financial platform. However, there are some risks involved in Defi such as bugs in the software, counterparty risk, token risk, regulatory risk, impermanent risk, and gas fees. Risks on Cefi are lower as trained financial experts manage funds and execute the business services. Users shift the risks to the exchange.<\/span><\/p>\n<h3><b>7. Defi market vs CeFi market<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">If we compare the Defi market vs CeFi market we learn that because of the nature of blockchains,\u00a0 most Defi markets are open 24&#215;7. Defi does not have pre and post-market trading. On the other hand, CeFi markets are known for experiencing outages. The New York Stock Exchange and Nasdaq Stock Exchange, have working hours from 9.30 am to 4.00 pm. During pre and post-market trading where liquidity on a variety is thin in this period.<\/span><\/p>\n<h3><b>8. Defi cost vs CeFi cost<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The difference between Defi cost vs CeFi cost is as follows \u2013 Users need to pay gas fees to process the transaction in Defi. Most Defi transactions are on the Ethereum blockchain. Gas fees are usually typically Gwei, a smaller fraction of Ether (ETH), Ethereum native token. As the number of Defi users increased the gas fees skyrocketed.\u00a0 To avoid the hassle of Anti-Money laundering verification, CeFi platforms choose to offer transaction services for free or are compelled by the government to offer some services for free. CeFi can have higher transaction fee due to third-party compliance.<\/span><\/p>\n<p style=\"text-align: center;\"><strong>Also read:\u00a0<a href=\"https:\/\/unremot.com\/blog\/why-are-nft-gas-fees-so-high\/\">Why are NFT Gas fees so high? | Deep dive into gas fees<\/a><\/strong><\/p>\n<h3><b>9. Defi crypto assets vs. CeFi crypto assets<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Let us examine the difference between Defi crypto assets vs. CeFi crypto assets \u2013 Defi tokens are assets similar to coins and are created on preexisting blockchains. Defi crypto assets will play a prominent role in their ecosystem. Defi tokens have the highest market cap.\u00a0 Aave-Aave, Synthetix-SNX, and yEarn yFi are some top-performing Defi tokens. CeFi assets allow borrowing, lending, and payment services.<\/span><\/p>\n<h3><b>10. Defi development vs. CeFi development<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Notable differences between Defi Development vs. CeFi development is there are many companies and developers helping in Defi dApps Development, Defi smart contract development, Defi wallet<\/span><\/p>\n<p><span style=\"font-weight: 400;\">development, Defi landing platform development, Defi Token development, and Defi exchange development.\u00a0 Many Defi apps are open source and the code can be viewed. CeFi Development is done by CeFi companies.<\/span><\/p>\n<h3><b>11. Defi coin support vs. CeFi coin support<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">We discuss the difference between Defi coin support vs. CeFi support. Defi coin allows you to invest in the Defi swap ecosystem. Similar to fiat coins Defi coins transfer value in the course of the financial transaction. Some Defi coins are\u00a0 Maker, Compound, Uniswap, Aave, Chainlink, and Ankr. CeFi coin supports trading in LTC, XRP, BTC, and other coins issued by other blockchain platforms. Cefi allows for cross-chain swaps.<\/span><\/p>\n<h3><b>12. Defi transparency vs. CeFi transparency<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Comparing Defi transparency vs. CeFi transparency, we learn Defi is more transparent. The rules and smart contracts are publically available and additional meta-information help observers study the data. Many Defi programs are open-source and the code is open to audit and scrutiny.\u00a0<\/span><\/p>\n<h2><b>FAQ&#8217;s on Defi vs CeFi<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Both Decentralized and Centralized finances aim to popularize crypto trading. In CeFi, users put trust the business will take care of user\u2019s funds and Defi users trust the technology will perform as quoted. CeFi has a larger market cap when compared to Defi and is simpler to use. Here are some common faqs on Defi vs. CeFi.<\/span><\/p>\n<h3><b>1. What is the difference between Defi and crypto?<\/b><\/h3>\n<table>\n<tbody>\n<tr>\n<td><span style=\"font-weight: 400;\">Defi<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Crypto<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Defi allows you to borrow, lend, and trade in cryptocurrencies.\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Cryptocurrencies store value much like fiat currency that operates on their own currency.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Defi uses smart contracts to validate transactions.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Crypto uses proof of concepts and miners validate transactions.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p style=\"text-align: center;\"><strong>Also read:\u00a0<a href=\"https:\/\/unremot.com\/blog\/how-to-write-a-smart-contract\/\">How to write a smart contract? | Step-by-Step Guide<\/a><\/strong><\/p>\n<h3><b>2. Is Coinbase CeFi and Defi?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Coinbase is a CeFi firm it is a well-known cryptocurrency exchange that allows for buying, selling, and exchange of cryptocurrencies like Bitcoin, Ethereum, and Dogecoin. Coinbase has two products Coinbase platform to buy and sell orders and Coinbase pro with more features for advanced users. Coinbase operates in over 100 countries and manages a robust cryptocurrency ecosystem supporting 13,000 <\/span><span style=\"font-weight: 400;\">financial intuitions.<\/span><\/p>\n<h3><b>What is the best Defi crypto?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Defi is said to be the next big thing in cryptocurrency and blockchain platforms. Defi projects aim to provide traditional financial services such as loans, saving accounts, and asset exchange without a middleman or intermediary. The best Defi cryptos are-<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Defi Coins<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Lucky Block<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Uniswap<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Terra<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Decentraland<\/span><\/li>\n<\/ul>\n<h3><b>Are all Defi built on Ethereum?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">A vast majority of Defi runs on Ethereum. Ethereum was created as a smart contract platform. Smart contracts are bought in the concept of self-executing contracts. However, Ethereum is slow. Visa handles over 1, 700 to 2400 transactions per second (TPS) while Ethereum can manage only 10 to 15 TPS. Transactions pile up faster, leading to delays and higher transaction fees. Defi is available on other blockchains like \u2013 Avalanche, Binance smart chain, Polygon, Polkadot, Solona, and Cardano.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>New to the concept of decentralized finance? In this blog, we deep dive into the difference between Defi vs Cefi. Understand the differences with examples, use cases and features. Let&#8217;s begin! Defi vs Cefi Cryptocurrencies were invented with the intent of decentralizing the financial trading system. Decentralized Finance (Defi) is built as an open-source, permissionless, [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":4352,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[78],"tags":[],"class_list":{"0":"post-4457","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-blockchain","8":"entry"},"_links":{"self":[{"href":"https:\/\/unremot.com\/blog\/wp-json\/wp\/v2\/posts\/4457","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/unremot.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/unremot.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/unremot.com\/blog\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/unremot.com\/blog\/wp-json\/wp\/v2\/comments?post=4457"}],"version-history":[{"count":4,"href":"https:\/\/unremot.com\/blog\/wp-json\/wp\/v2\/posts\/4457\/revisions"}],"predecessor-version":[{"id":4465,"href":"https:\/\/unremot.com\/blog\/wp-json\/wp\/v2\/posts\/4457\/revisions\/4465"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/unremot.com\/blog\/wp-json\/wp\/v2\/media\/4352"}],"wp:attachment":[{"href":"https:\/\/unremot.com\/blog\/wp-json\/wp\/v2\/media?parent=4457"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/unremot.com\/blog\/wp-json\/wp\/v2\/categories?post=4457"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/unremot.com\/blog\/wp-json\/wp\/v2\/tags?post=4457"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}