Glossary - ChicksX

TradFi is traditional finance, encompassing established financial systems like banks, stock markets, and regulatory frameworks.

TradFi is the abbreviation for traditional finance. It refers to the established financial systems and institutions that have dominated the global economy for decades. This includes banks, stock exchanges, and insurance companies. TradFi operates under strict regulatory frameworks and provides services like savings accounts, loans, and investment products. It contrasts with decentralized finance (DeFi), which leverages blockchain technology to offer financial services without intermediaries. While TradFi is known for its stability and regulatory oversight, it can be slower to innovate. Understanding TradFi is crucial for comprehending how cryptocurrencies and blockchain technology are disrupting conventional financial systems.