Traditional Finance (TradFi) refers to a capital market structure that depends on centralized institutions and intermediaries like banks, brokers, and clearinghouses to provide access to financial services and products.

TradFi and DeFi have many differences, and they operate in distinct ways. TradFi is typically centralized, with a small number of large financial institutions controlling the majority of the market. DeFi, on the other hand, is decentralized, with no single entity or group of entities controlling the market.

TradFi and DeFi also have different goals and objectives. TradFi is focused on maximizing profits and providing financial services to a select group of clients, while DeFi is focused on providing financial services to a wider range of users and promoting greater access and inclusion in the financial system.

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