Exercise 2: Financial Architecture Comparison

⏰ Time Investment: 30-45 minutes 🎯 Goal: Understand the differences between TradFi, CeFi, and DeFi

📚 Required Reading Integration 📖 Primary: Lesson 2: TradFi, CeFi, and DeFi

🔍 Phase 1: Knowledge Check (15 minutes)

1. What are the key characteristics of TradFi?

• Your answer: _________________________________

2. Why is CeFi called the "uncanny valley"?

• Your answer: _________________________________

3. What makes DeFi fundamentally different from CeFi?

• Your answer: _________________________________

4. What happened to FTX and why does it matter?

• Your answer: _________________________________

5. What is the difference between permissioned and permissionless systems?

• Your answer: _________________________________

📊 Phase 2: Comparison Table (15 minutes)

Create a comparison table for TradFi, CeFi, and DeFi covering:

• Custody model

• Settlement time

• Transparency

• Access requirements

• Trust model

💡 Phase 3: Scenario Analysis (15 minutes)

Analyze which financial system (TradFi/CeFi/DeFi) would be best for:

• Daily crypto trading

• Long-term savings

• Borrowing against crypto

• International remittances