What is DeFi vs traditional finance? Complete Overview for 2026

Introduction to DeFi vs traditional finance

DeFi vs traditional finance represents one of the most innovative aspects of blockchain technology. It aims to recreate traditional financial services in a decentralized way.

For newcomers, DeFi vs traditional finance can seem overwhelming, but the core concepts are straightforward once you understand the basics.

How DeFi vs traditional finance Works

At its core, DeFi vs traditional finance relies on smart contracts — self-executing code on the blockchain that eliminates the need for intermediaries.

Understanding the mechanics of DeFi vs traditional finance helps you make informed decisions and avoid common pitfalls.

Getting Started with DeFi vs traditional finance

To begin exploring DeFi vs traditional finance, you will need a compatible wallet like MetaMask and some cryptocurrency for gas fees.

Start with small amounts as you learn how DeFi vs traditional finance works before committing larger sums.