A review of traditional finance (TradFi) and decentralised finance (DeFi), and its challenges to the lending market.

In this work, we systematically analyse the differences and similarities between TradFi (Traditional Finance) and DeFi (Decentralised Finance). Financial technology is rapidly expanding, and large technology firms are making advances in credit markets. The Internet of Value (IOV), with its distributed ledger technology (DLT) as a basis, has developed new types of loan marketplaces. In this paper, we enumerate the prospects & challenges of Traditional Finance (TradFi) lending markets driven by banks and other lending institutes, as well as the opportunities of DeFi lending protocols that may support the resolution of long-standing concerns in the conventional lending landscape. Overall, fintech and big tech credit appear to complement rather than substitute the traditional forms of lending.