EP.14 — THE DIFFERENCE BETWEEN 3 FINANCIAL WORLDS
Think of finance as three different layers:
TradFi
Banks, brokerages, stocks, commodities and other traditional financial instruments.
CeFi
Centralized crypto platforms that provide financial services through an intermediary.
DeFi
Blockchain-based protocols where financial functions can be performed through smart contracts.
For a long time, these worlds developed separately.
Now they're increasingly interacting.
Tokenization connects traditional assets with blockchain infrastructure.
Centralized platforms connect crypto users with more financial products.
DeFi creates another layer of programmable financial infrastructure.
This convergence is one of the ideas behind the emerging TriFi model.
Different systems.
Increasingly connected.
Educational content only. Not financial advice.