DeFi vs Traditional Finance

Understanding the differences helps you appreciate DeFi's revolutionary potential.

Access & Inclusion

Requires government ID

Credit checks and approvals

Geographic restrictions

Minimum balance requirements

Only needs an internet connection

No credit checks

Available globally

Start with any amount

Proprietary systems

Hidden fees

Opaque processes

Trust-based

Open-source code

Visible transactions

Auditable logic

Verifiable on-chain

International transfers: 3-5 days

High fees for services

Bank hours only

Transfers: minutes

Often lower fees

24/7 availability

Counterparty risk (bank failure)

Inflation erodes value

Account freezing possible

Smart contract bugs

Volatility

User error (no recovery)

Regulatory uncertainty