DeFi vs Traditional Finance: Who will win?

24.10.2025

The financial world is undergoing a transformation. Not long ago, all transactions passed through banks, brokers, and other intermediaries. Today, the term DeFi – decentralized finance – is being heard more often, where control belongs not to banks but to code and users. In the traditional system, almost every transaction requires permissions and intermediaries. Transfers, loans, deposits – everything goes through a bank that charges fees and oversees the process. It’s familiar but often slow and not always transparent. DeFi works differently. There’s no central authority – all processes are executed automatically through smart contracts. Any user can lend, exchange, or invest funds without intermediaries. The main advantage is openness and accessibility. All data is visible on the blockchain, and decisions are made based on predefined rules. Of course, DeFi has its risks. Not all protocols are equally reliable, and coding errors can lead to losses. Yet, the system is evolving rapidly: new insurance mechanisms, audits, and security standards are emerging. There’s no clear winner in this rivalry yet. Instead, there’s a merging of two worlds. Banks are exploring blockchain and launching their own digital products, while DeFi projects are seeking ways to integrate with the real economy. Perhaps the future of finance is not about choosing between DeFi and banks, but about their cooperation. When blockchain transparency meets the reliability of traditional institutions, users will finally get what they’ve long been missing – freedom without losing trust.