The centralised finance offer financial services and they are provided by centralized entities like banks and some other traditional financial institutions. On the other hand, the decentralized finance carry out financial services which are provided through decentralized platforms that are built on the blockchain technology. The major difference between the both is that they have different underlying infrastructures in which one have a centralized intermediaries and the other operate on decentralized network.
What are the differences between Centralsed finance and decentralized finance?
- Thread starter flower
- Start date
Centralized finance means there is central authority, for instance central bank is controlled by government. Decentralized finance means without a central authority, it is completely controlled by the community just like Bitcoin.
