Defi Manual: Part 5 — Synergies
Here are my previous series in case you wonder:
Defi Manual: Part 1 — Cefi vs. Defi
Defi Manual: Part 2 — Regulations
Defi Manual: Part 3 — Financial Weapons
Defi Manual: Part 4 — Market Manipulation
Defi and Cefi are ongoing debates of the future financial system will be like. Since I cannot predict the future, I may share one of the possible ways for Defi and Cefi to coexist in the future.
What is a Synergy?
Synergy is a way to combine two different systems and work together as one.
Benefits of Defi
The first thing you may think of Defi is decentralized. However, what is really decentralized? A decentralized system is fair and transparent. It also protected your privacy.
Downside of Defi
Some disadvantages of Defi you can experience are high transaction costs and confirmation latency that may delay your transactions. Also, the transaction is in one direction and cannot reverse if you send it by a mistake.
Benefits of Cefi
You may think there are not so many advantages of Cefi but there are. Security is the first benefit from Cefi in that they are heavily guarded and hard to penetrate…
