Decentralized Finance (DeFi) vs. Centralized Finance (CeFi)

Abstract

This research paper explores the dichotomy between Centralized Finance (CeFi) and Decentralized Finance (DeFi) within the context of the Indian Constitution. It critically analyzes the constitutional implications of both systems, particularly focusing on how centralized authorities may misuse their power to curtail freedoms guaranteed under the Constitution. Additionally, the paper investigates how DeFi can support constitutional values such as privacy, freedom of trade, and equality. Finally, it examines how centralized authorities are actively hindering DeFi-based implementations to maintain control over financial systems, thereby compromising democratic principles.