> For the complete documentation index, see [llms.txt](https://docs.horaos.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.horaos.com/defi/2.-cefi-and-defi/3-what-is-the-difference-between-defi-and-cefi.md).

# 3. What is the Difference between DeFi and CeFi?

• The biggest difference between traditional finance and decentralized finance is Custodial.

• In traditional finance: There are intermediaries with centralized power in organizations, markets and financial tools.

• Meanwhile, DeFi leverages Blockchain's power of transparency and decentralization to eliminate these intermediaries.

Specifically:

• Government or banking (CeFi) will be replaced by decentralized blockchains.

• CeFi's assets will be replaced by tokens located in the Blockchain ecosystem. They are decentralized.

• DeFi's mission is to provide users with access to financial services anywhere, whenever as long as they have the Internet. DeFi's openness is shown here.\
\ <br>


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.horaos.com/defi/2.-cefi-and-defi/3-what-is-the-difference-between-defi-and-cefi.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.