DeFi vs TradFi: Understanding the Disruption and the Path Forward
As blockchain technology matures, the divide between Traditional Finance (TradFi) and Decentralized Finance (DeFi) grows increasingly relevant. This article explores the key differences between these two financial systems, highlights DeFi’s core innovations—from decentralized exchanges to tokenization—and examines the structural limitations of TradFi. It also delves into what traditional institutions can learn from DeFi’s transparency, efficiency, and accessibility, while acknowledging the regulatory and security challenges DeFi must overcome