Recent research has found that in the past year, DeFi’s influence is comparable to that of FinTech.
1.Trust-based vs trust-minimised
The Trusted-based operating model depends on the absolute trust behind the operating organization. There is no choice but to trust. The trust-minimised model does not depend on the organization, but verifies the audit by any means, making the process completely open.
While FinTech is rooted in the trust mechanism, DeFi will greatly reduce its dependence on trust.
2. Trust system vs open source
The software system used by FinTech is privately owned by a company, and its operating environment is a fully trusted environment controlled by individuals. All transactions and liquidation depend on a trust system, not the code itself.
The software systems used by DeFi are all open source. Whether it is BTC or the Lightning Network, or through Ethereum smart contracts, the execution of the core logic is all protected by cryptography and is irrevocable. The execution process is on a detrusted blockchain network, and the result does depend on trusting the system.
1.Trust based vs Trust minimised
2.信任系统 vs 开放源代码