Key Takeaways 1. DAOs, De-Fi, and D-apps are completely different concepts and should not be used interchangeably in web 3.

8. DAOs and De-Fi are different in terms of their objectives and fundamentals. De-Fi organizations pursue financial objectives while DAOs aren’t necessarily financial in nature. De-Fi organizations integrate DAOs into their structure to manage communities.

6. De-Fi and D-apps differ on two major fronts. First, De-Fi projects are necessarily financial in nature while D-apps are not. Second, D-apps lack a comprehensive governance structure, that is an active component in De-Fi.

5. De-Fi is an emerging financial technology that uses distributed ledgers to remove middlemen from financial transactions. They are a combination of smart contracts and DAOs.

DeFi De-Fi is the branch of Web3 that is pushing the boundaries of financial services by making them more inclusive, secure, and decentralized. The primary objective of De-Fi platforms is to remove all middlemen from financial services and transactions.

Smart contracts are pieces of code that have in them a set of criteria for a transaction to take place, and when these criteria are met, the transaction goes through without any human intervention. A smart contract has two major components, digital assets, and two or more participants.

3. D-apps are a nexus of smart contracts backed by nodes across the spectrum. The difference between smart contracts and D-apps is that D-apps are open-ended on all fronts.

7. D-apps and DAOs differ on one major front, i.e DAOs have internal capital while D-apps don’t. DAOs without internal capital are simply D-apps.

4. DAOs are trust-less organizations owned and governed by community members. DAOs have smart contracts for decentralization and humans on the periphery for governance.