CeFi, DeFi, CoFi?
CeFi and Defi are terms you’ve probably heard of before. But what exactly is CoFi, and how could it fulfil crypto’s promise of helping investors take back control of their finances?
Welcome to The Daily Forkast – February 16, 2023 – presented by Joel Flynn.
You’ve probably heard of CeFi and DeFi. CeFi, or centralized finance, refers to crypto transactions that utilize a centralized institution, whereas DeFi, or decentralized finance, takes out the middle man and allows you to transact directly with someone else.
But what exactly is CoFi? It stands for collaborative finance, and although it’s an emerging idea in the crypto space, it’s not a new concept in the financial world. The idea is to promote a healthier economy on a localized scale where small and medium-sized businesses can make cash flow problems easier by going directly to suppliers.
But how far has CoFi gone in the crypto space and, perhaps most importantly, could it fulfill crypto’s promise of revolutionizing money and help us take back control of the real economy and our finances?
We’ll have more on that in this episode of The Daily Forkast.