CeFi vs DeFi

I believe that now more than ever we must be cautious about how to obtain our money and ensure that in the investments we have, a positive return is obtained that allows us to overcome the obstacles that currently present us with our finances.

Part of the crytographic world that we know is born from the idea of counteracting that system that keeps our finances centralized and that in a certain way takes away our position when deciding what to do and how much to have. We have been working with debt for a long time on a structure that guides us how to operate with more debt.

Cryptography, led by Bitcoin, has given us many tools and ways to begin to see things in our own way or rather, decentralized. This term allows us to see that the essence of this world, beyond other things, is to explore the concept and practice of managing our finances in our own way, of course, through blockchain technology.

However, even with this precedent, the development of this financial ecosystem does not escape its own centralization. Many of us have already heard of Decentralized Finance (DeFi) and how it is a fast-growing movement whose guarantee is leveraged by technology through smart contracts, without depending on a centralized entity; Unlike Centralized Finance (CeFi), which is a "twin" counterpart of its predecessor but is led by an entity or group of people in charge of managing the funds, managing the funds in an ethical manner.

We are beginning to see a new internal struggle that contradicts in many cases the essence of this new system in the cryptographic world; There are many premises that fall into various interpretations, remember that we are talking about a market of more than $ 4,500 Billion, blocked (TVL) and that will grow even more due to the integration of users who seek new forms of investment and financing away from traditional banking .

CeFi are currently dominated by private companies such as Crypto.com, Celsius, Cred, BlockFi, Nexo, among others and it is behavior that was to be expected; The DeFi, for their part, preach a free custody of third parties and clean of that trust system that only stains the cryptographic ecosystem.

The truth is that we will see a world in constant and growing conflict and it will be interesting to see how far they will go in favor of pushing this responsibility to take finances to a whole new level.