{"id":20431,"date":"2023-03-01T10:11:46","date_gmt":"2023-03-01T10:11:46","guid":{"rendered":"https:\/\/zebpay.com\/au\/?p=20431"},"modified":"2023-03-01T10:41:12","modified_gmt":"2023-03-01T10:41:12","slug":"what-is-cedefi","status":"publish","type":"post","link":"https:\/\/zebpay.com\/au\/blog\/what-is-cedefi","title":{"rendered":"What is CeDeFi?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-cedefi\/#Introduction_To_CeDeFi\" title=\"Introduction To CeDeFi\">Introduction To CeDeFi<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-cedefi\/#How_Does_CeDeFi_Work\" title=\"How Does CeDeFi Work?\">How Does CeDeFi Work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-cedefi\/#How_Did_CeDeFi_Enter_The_Crypto_Market\" title=\"How Did CeDeFi Enter The Crypto Market?\">How Did CeDeFi Enter The Crypto Market?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-cedefi\/#CeDeFi_Advantages_Disadvantages\" title=\"CeDeFi: Advantages &amp; Disadvantages\">CeDeFi: Advantages &amp; Disadvantages<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-cedefi\/#Verified_Services_and_Products\" title=\"Verified Services and Products\">Verified Services and Products<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-cedefi\/#Compliance\" title=\"Compliance\">Compliance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-cedefi\/#Lower_Costs\" title=\"Lower Costs\">Lower Costs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-cedefi\/#High_Learning_Curve\" title=\"High Learning Curve\">High Learning Curve<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-cedefi\/#New_and_Unproven\" title=\"New and Unproven\">New and Unproven<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-cedefi\/#Could_CeDeFi_Be_The_Future_of_DeFi\" title=\"Could CeDeFi Be The Future of DeFi?\">Could CeDeFi Be The Future of DeFi?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-cedefi\/#Final_Thoughts\" title=\"Final Thoughts\">Final Thoughts<\/a><\/li><\/ul><\/nav><\/div>\n\n<p>The world of finance has been revolutionised by the use of blockchains and crypto. Payments, investments and even lending have reached a much wider population than possible before. Currently, there are two options within blockchain finance &#8211; Decentralized Finance (DeFi) and Centralized Finance (CeFi). But each of them comes with its own set of disadvantages. CeDeFi is here to change all that.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Introduction_To_CeDeFi\"><\/span>Introduction To CeDeFi<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>CeDeFi is a combination of DeFi and CeFi, creating a unique blend that integrates benefits from both types of services. In essence, it allows you to explore <a href=\"https:\/\/zebpay.com\/au\/blog\/an-introduction-to-defi\" target=\"_blank\" rel=\"noreferrer noopener\">DeFi<\/a> services like lending, liquidity and yield farming at a much lower cost than standard DeFi platforms.&nbsp;<\/p>\n\n\n\n<p>Read more: <a href=\"https:\/\/zebpay.com\/au\/blog\/how-does-defi-lending-work\" target=\"_blank\" rel=\"noreferrer noopener\">How Does DeFi Lending Work<\/a><\/p>\n\n\n\n<p>This brings the best features and characteristics of each system and makes them available to both individuals and businesses. Platforms can deploy trusted smart contracts and have more control over the network, while users can still enjoy DeFi products at a low cost.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Does_CeDeFi_Work\"><\/span>How Does CeDeFi Work?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The most important thing to understand about CeDeFi platforms is that they are not entirely decentralized. Unlike DeFi platforms like Aave and <a href=\"https:\/\/zebpay.com\/au\/blog\/what-is-pancakeswap-cake\" target=\"_blank\" rel=\"noreferrer noopener\">PancakeSwap<\/a>, there is a single company or group of entities in control of a CeDeFi platform.&nbsp;<\/p>\n\n\n\n<p>While this may act as a deterrent for some users, it also allows the network to be more consolidated. Better integration of products across the platform benefits its users through faster updates, lower transaction costs and more liquidity.&nbsp;<\/p>\n\n\n\n<p>However, this centralized control method also means it is not as resistant to outside interference. Decentralized networks allow users from all over the world to access them. This means even locations and countries where crypto may be banned or restricted can use DeFi. But CeDeFi is less resistant to censorship and blocks from governments.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Did_CeDeFi_Enter_The_Crypto_Market\"><\/span>How Did CeDeFi Enter The Crypto Market?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" width=\"1024\" height=\"384\" src=\"https:\/\/zebpay.com\/au\/wp-content\/uploads\/2023\/03\/How-Did-CeDeFi-Enter-The-Crypto-Market-1024x384.jpg\" alt=\"How Did CeDeFi Enter The Crypto Market?\" class=\"wp-image-20436\" srcset=\"https:\/\/zebpay.com\/au\/wp-content\/uploads\/2023\/03\/How-Did-CeDeFi-Enter-The-Crypto-Market-1024x384.jpg 1024w, https:\/\/zebpay.com\/au\/wp-content\/uploads\/2023\/03\/How-Did-CeDeFi-Enter-The-Crypto-Market-300x113.jpg 300w, https:\/\/zebpay.com\/au\/wp-content\/uploads\/2023\/03\/How-Did-CeDeFi-Enter-The-Crypto-Market-768x288.jpg 768w, https:\/\/zebpay.com\/au\/wp-content\/uploads\/2023\/03\/How-Did-CeDeFi-Enter-The-Crypto-Market.jpg 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n<p><\/p>\n\n\n\n<p>Binance has had a massive role to play in the spread of CeDeFi. Until a few years ago, the DeFi industry was dominated entirely by Ethereum and platforms built on top of it. Binance had its own blockchain known as the Binance Chain, which was created for a network with high throughput that services users of the Binance exchange.<\/p>\n\n\n\n<p>However, they soon saw the opportunity to expand into smart contracts and <a href=\"https:\/\/zebpay.com\/au\/blog\/everything-you-need-to-know-about-dapps\" target=\"_blank\" rel=\"noreferrer noopener\">dApps<\/a>. This led to the creation of the BNB Smart Chain in 2020, which sacrificed decentralization for much higher scalability and transaction speed. With this, they also coined the term \u201cCeDeFi\u201d.&nbsp;<\/p>\n\n\n\n<p>This new blockchain uses the <a href=\"https:\/\/zebpay.com\/au\/blog\/proof-of-stake-explained\" target=\"_blank\" rel=\"noreferrer noopener\">Proof of Staked<\/a> Authority consensus mechanism. It thus allows only 21 active validators to participate in block confirmation. The platform is much more centralized than alternatives like Bitcoin and Ethereum, but this has led to easier usage for users and developers alike.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"CeDeFi_Advantages_Disadvantages\"><\/span>CeDeFi: Advantages &amp; Disadvantages<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Verified_Services_and_Products\"><\/span>Verified Services and Products<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Every product launched on a CeDeFi platform is thoroughly tested and vetted by those in charge. This greatly reduces the likelihood of scams or vulnerabilities in the product, meaning your money is more secure.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Compliance\"><\/span>Compliance<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The existence of procedures like know your customer (KYC) makes the process more compliant with regulatory requirements for businesses and individuals alike. You can thus participate or create for CeDeFi with regulatory needs met.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Lower_Costs\"><\/span>Lower Costs<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Consolidation of the network into the control of a small group of entities allows fees to reach almost negligible levels. This is a huge advantage to frequent users of DeFi products.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"High_Learning_Curve\"><\/span>High Learning Curve<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Unfortunately, the products offered through CeDeFi platforms require a lot of familiarity with crypto. This means that they are not as beginner-friendly as using traditional platforms and you may need some time to get used to the products.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"New_and_Unproven\"><\/span>New and Unproven<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>CeDeFi is still in its nascent stage and has not been tested on a large scale. With time, this may change as more users and businesses enter the market.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Could_CeDeFi_Be_The_Future_of_DeFi\"><\/span>Could CeDeFi Be The Future of DeFi?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>CeDeFi offers DeFi products at much lower costs while allowing for better regulatory compliance and security to users. However, it has its own shortcomings with a high learning curve and a lack of resistance to censorship.&nbsp;<\/p>\n\n\n\n<p>This implies that DeFi will still have its place in the crypto market of the future, as some users will always require the complete freedom that comes with it. However, most ordinary investors may find the features of CeDeFi more attractive than DeFi\u2019s freedom. CeDeFi thus has a lot of potential to grow and gather market share.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Final_Thoughts\"><\/span>Final Thoughts<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>CeDeFi forms the perfect blend of DeFi and CeFi for regular users. While these platforms may have their shortcomings, it is undeniable that they add value to the lives of many investors. Its future looks promising, especially with large platforms such as Binance and Compound lending support to it.&nbsp;<\/p>\n\n\n\n<p>You can learn more about crypto on <a href=\"https:\/\/zebpay.com\/au\/blog\" target=\"_blank\" rel=\"noreferrer noopener\">ZebPay blogs<\/a>. Trade confidently with ZebPay Australia.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link has-white-color has-text-color wp-element-button\" href=\"https:\/\/connect.zebpay.com\/account\/UserRegistration?returnUrl=%2FAccount%2FCampaignRegister\" target=\"_blank\" rel=\"noreferrer noopener\">trade now<\/a><\/div>\n<\/div>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The world of finance has been revolutionised by the use of blockchains and crypto. Payments, investments and even lending have reached a much wider population than possible before. Currently, there are two options within blockchain finance &#8211; Decentralized Finance (DeFi) and Centralized Finance (CeFi). But each of them comes with its own set of disadvantages. [&hellip;]<\/p>\n","protected":false},"author":23,"featured_media":20437,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[14],"tags":[16],"class_list":["post-20431","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto","tag-crypto"],"acf":[],"_links":{"self":[{"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/posts\/20431","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/users\/23"}],"replies":[{"embeddable":true,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/comments?post=20431"}],"version-history":[{"count":3,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/posts\/20431\/revisions"}],"predecessor-version":[{"id":20439,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/posts\/20431\/revisions\/20439"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/media\/20437"}],"wp:attachment":[{"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/media?parent=20431"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/categories?post=20431"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/tags?post=20431"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}