A loan agreement that is enforced by courts of justice is traditional finance certainly.
Loans in decentralised finance use smart contracts, instead of relying on the legal system.
> Loans in decentralised finance use smart contracts, instead of relying on the legal system.
Code over law.
I agree that the overcollateralized loans backed by crypto are less useful unless you want to be investing crypto, which is what I mentioned at the beginning of my comment. I am not the commentator who said the thing about anywhere in the world without approval.