DeFi vs CeFi represent two distinct approaches to financial services. DeFi operates on decentralized networks, offering peer-to-peer financial transactions without intermediaries, increasing transparency, and reducing control by central authorities. In contrast, CeFi involves traditional financial systems managed by centralized entities like banks, exchanges, and lending platforms, which control user data and transactions. While CeFi provides regulatory compliance and customer support, DeFi offers greater freedom, lower fees, and enhanced privacy, albeit with higher risks.