Decentralized finance (DeFi) is an innovative approach to financial services, with its advanced blockchain technology, it provides users with trading without intermediaries. The fundamental ideology on which the DeFi system is developed is transparency, trust, anonymity, and global accessibility, which make DeFi a rival and challenger to the traditional centralized financial system (CeFi). This paper aims to explain the advantages and disadvantages of the decentralized financial system, to conclude whether it represents a threat to the traditional financial system or can serve as a catalyst for financial services. The paper explains the structure of the centralized system, its advantages, and disadvantages, and the views of experts on the influence of the decentralized system on the centralized one. To find the answer, it is important to understand the history and development of decentralized finance and the characteristics that make it a desirable financial system. Mutual collaboration between the two systems is possible as explained in several examples, and with a case study. Cooperation is the most likely option for the future development of both systems. Institutions of the centralized system and authorities have reacted to the increasing use of decentralized financial services by introducing various regulatory and legal frameworks. They limit the wider use of decentralized services, question their legality, and contradict the fundamental ideology behind creating the DeFi system. Whether the DeFi will threaten the CeFi system remains an open question. Experts' opinions are divided and depend on the individual's background. The success of the decentralized system will be decided by its users, who will make decisions based on their own needs and preferences.