The term "traditional finance" (TradFi) refers to the well-established financial system that most people deal with on a daily basis. A TradFi product is, for instance, a savings account created with a bank that is authorized and regulated. In the TradFi universe, which is populated by retail, investment, and commercial banks, mortgages, bank loans, and foreign exchange services are all in operation. Within the blockchain and cryptocurrency ecosystem, the term "TradFi" is frequently used to contrast DeFi (decentralized finance) goods and services that run on blockchains and smart contracts. This contrast highlights a crucial difference between TradFi and DeFi. DeFi provides decentralized services that rely on smart contract authority and are accessible to anybody with a cryptocurrency wallet and enough cryptocurrency coins, in contrast to TradFi, which is often perceived as being centralized and having greater entry hurdles. TradFi and CeFi (centralized finance) can also be contrasted. Many of the services DeFi offers are also provided by CeFi, although consumers access them through centralized exchanges. CeFi and TradFi are comparable to one another in terms of how customers access their products. As with a TradFi bank or institution, CeFi users must open accounts with their providers and grant them custody of their assets.