CEFI (Centralized Finance) refers to traditional financial systems where financial intermediaries, such as banks, credit unions, and other financial institutions, act as central authorities, controlling the flow of funds between parties. In centralized finance, the intermediaries manage deposits, perform credit checks, and make decisions about who can borrow money and at what interest rate.
The operations are primarily conducted using centralized databases, and the system relies on the trustworthiness and competence of the intermediaries. CEFI is often compared with DeFi (Decentralized Finance) because DeFi eliminates intermediaries, operates on public