Centralized Finance vs. Decentralized Finance

The Difference between CBDC = (Central bank digital currency) Vs. DFC = (Decentralized Finance) ?

Part #1

Decentralized finance differs from traditional, centralized financial institutions and banking.

Centralized Finance:

In centralized finance, money is held by banks and third parties who facilitate money movement between parties, with each charging fees for using their services. A credit card charge starts from the merchant and moves to an acquiring bank, which forwards the card details to the credit card network.

The network clears the charge and requests a payment from the bank. Each entity in the chain receives payment for its services, generally because merchants must pay for the use of credit and debit cards.
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All financial transactions are overseen in centralized finance, from loan applications to a local bank's services.

Two of DeFi's goals include reducing transaction times and increasing access to financial services.
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Decentralized Finance:

Decentralized finance eliminates intermediaries by allowing people, merchants, and businesses to conduct financial transactions through emerging technology. Through peer-to-peer financial networks, DeFi uses security protocols, connectivity, software, and hardware advancements.
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Wherever there is an internet connection, individuals can lend, trade, and borrow using software that records and verifies financial actions in distributed financial databases. A distributed database is accessible across various locations as it collects and aggregates data from all users and uses a consensus mechanism to verify it.
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Decentralized finance eliminates the need for a centralized finance model by enabling anyone to use financial services anywhere regardless of who or where they are. DeFi applications give users more control over their money through personal wallets and trading services that cater to individuals.

Decentralized finance does not provide full anonymity. Transactions do not include an individual's name but are traceable by the entities that have access, including governments, and law to protect an individual's financial interests.
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How Does DeFi Work?

Decentralized finance uses the blockchain technology that cryptocurrencies use. A blockchain is a distributed and secured database or ledger. Applications called dApps are used to handle transactions and run the blockchain.
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In the blockchain, transactions are recorded in blocks and then verified by other users. If these verifiers agree on a transaction, the block is closed and encrypted; another block is created that has information about the previous block within it.

The blocks are "chained" together through the information in each proceeding block, giving it the name blockchain. Information in previous blocks cannot be changed without affecting the following blocks, so there is no way to alter a blockchain. This concept, along with other security protocols, provides the secure nature of a blockchain.

Please download and re-post this video. You can download it by clicking the download link. It is vital that every person understands what the proposed changes to the monetary system will mean. The changes, if allowed to happen, could be the most devastating event in our lifetime

Links:
CBDC: = (Central bank digital currency)https://www.investopedia.com/terms/c/central-bank-digital-currency-cbdc.asp

VS.

DFC = (Decentralized Finance)
https://www.investopedia.com/decentralized-finance-defi-5113835