TradFi(Traditional Finance) is the usual traditional commercial finance and banks we all know. Which is one of the most centralised industries in the world. This type of institution is the type that has control over your assets once it’s deposited in their possession. The moment you deposit your money into the bank, the bank temporarily owns your money until you withdraw and they can do anything with it. As a matter of fact they can sell you offers to make you keep your money longer with them. Coming up with % interest for a specific locked time of your funds just to extend the time they can hold your money.
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Have you ever gotten stranded while purchasing an item because your trade card didn’t work? I have, that is because, whenever there is a network issue on trade it affects all aspect of the company. If you bank card cant work, your online transfer will most probably not work. Because, your bank has not approved the transaction, nothing can be done, no transaction can be done as long as your bank has not approved the transaction. So who owns the money? You or the bank? For you to spend the money, the bank has to approve it, try doing an offshore transfer and you will dislike your bank so bad. The restrictions and terms are too much including their charges, the bank can charge up to 10% for an off shore transfer.
But when have you ever tried accessing your crypto or make a transaction and you couldn’t, except its on CEX(Centralised Exchange) then its no different from TradFi, but as long as you are using a DEX wallet and diversifying your crypto, then you have nothing to worry about. On TradFi whenever you want to make a transaction, your bank has to approve it, but on DeFi like crypto, you dont need anyone’s approval but yours, what the UI notifies you is a confirmed transaction, meaning that your transaction which was approved by you has been confirmed. This shows just how decentralised the system is and how you own and control your assets.