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Here’s How Real-World Assets Are Unlocking Defi’s Full Potential

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There’s no denying the fact that the DeFi market has scaled up to dizzying heights recently, something that is made evident by the fact that the total value locked (TVL) within this space has increased from $23 billion to a whopping $93 billion over the course of 2021 alone. Not only that, as this burgeoning sector has continued to mature, so has its list of practical use cases, that seems to be growing at a rapid pace with each passing day.

Additionally, as per a recent report, as the crypto market has continued to draw the interest of investors across the globe, it is estimated that the DeFi sector is poised to grow by a factor of 10x over the course of the next year, which means that by the turn of 2023, the total valuation of this market could be hovering close to the $1 trillion mark. And while that number may sound quite outlandish at first sight, it is worth remembering that between May 2020-2021, the total amount of money entering this space grew by a staggering 88x — rising from $1 billion to $88 billion.

With that being said, we should look at what the term ‘Real World DeFi’ means. Simply put, it refers to a decentralized project that can be used to solve everyday issues affecting people globally, especially those individuals who don’t have access to basic emittance services. In that sense, it bears mentioning that there currently exist just a select few DeFi applications that actually have the potential to facilitate real-world change.

Centrifuge and MakerDAO are two examples of projects that fit the bill perfectly, with the latter having paved the way for other similar projects since it was the first to feature its very own stablecoin that could be used for things like payments, invoice issuance, transfer of assets — all using crypto assets.

An overview of Centrifuge

In its most basic sense, Centrifuge can be thought of as a decentralized asset financi...

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