# CeFi and DeFi - Differences

## Centralized Finance - CeFi

CeFi refers to traditional finance where users trade crypto over a platform on which they basically trust the agency and other users. 

#### Advantages of CeFi

* Efficient transaction processing
* More trading pairs

#### Disadvantages of CeFi

* High transaction fees
* Lack of privacy
* Lack of transparency
* Lack of absolute control over funds

#### ONTO-supported CeFi dApps:

* Babel
* FBGone
* …

## Decentralized Finance - DeFi

DeFi is a new development in the crypto industry that enables fully decentralized blockchain applications, removing the need for third-party institutions. Users rely on the exchange protocol rather than an intermediary.

#### Advantages of DeFi

* Fully automated
* Universally accessible
* Greater degree of system interoperability

#### Disadvantages of DeFi

* Relatively lower liquidity
* Project scalability
* Lower tolerance for human operational error

#### ONTO-supported DeFi dApps:

* 1inch
* MakerDAO
* Compound
* Uniswap
* ……