DIP: 18.02.011/20251003 
DOI: 10.25215/2455/1003011 
Abstract
The emergence of Decentralized Finance (DeFi) presents a transformative challenge and opportunity to traditional banking systems by leveraging blockchain technology to provide open, permissionless, and transparent financial services. This comparative analysis explores the structural, operational, and regulatory contrasts between DeFi platforms and conventional banking institutions. It highlights how DeFi enables peer-to-peer transactions, reduces intermediaries, and offers global financial access, while also facing issues related to scalability, security, and regulatory compliance. The paper examines case studies and market trends to assess how traditional banks are responding through fintech partnerships, blockchain integration, and regulatory lobbying. Ultimately, the study provides insights into the convergence possibilities and future trajectories of both systems, emphasizing the need for a balanced regulatory framework that fosters innovation without compromising financial stability.
The author(s) appreciates all those who participated in the study and helped to facilitate the research process. 
The author(s) declared no conflict of interest. 
ISSN 2455-670X