Centrifuge is a project that integrates decentralized finance with the real world. In other words, it allows bringing assets from the real world to the blockchain multiverse.
In traditional finance, many people and entities build their businesses with borrowed funds. On the other hand, investors put their financial resources in group funds, from which entrepreneurs can borrow. In the traditional financial sector, where there are intermediaries, borrowers use their assets as collateral (for instance: a house, land, a car, a company, …) However, from the beginning, companies and individuals have struggled to obtain loans in the cryptocurrency sector, as it has been a challenge to use collateral. Centrifuge solves this problem, using its system to allow companies and individuals to provide collateral to borrow funds from the world of cryptocurrencies.
How this is achieved is through the Centrifuge chain which is a Proof-of-Stake blockchain that allows users to incorporate their real-world assets into the chain as non-fungible tokens (NFT), but that of done if they have a function that is to act as collateral for the loan.
Thus, Centrifuge creates a bridge between physical asset holders and crypto lenders, unlocking the growth potential of the blockchain and the viability of businesses. All of this is done without the involvement of banks and other traditional financial institutions, which play an intermediary role.