> 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.\
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