The Gateway for Real-World Assets into the Blockchain Multiverse

Transcript

so I'm Cassidy Burkett a company cuts interviews for about 15 people based in Berlin and today I'm going to talk about centrifuge chain which we're building as the Gateway for real-world assets into the blockchain multiverse so what we're going to cover today is intro to centrifuge what actually are we doing what problem are we trying to solve and we are bridge so I'll just cover the bridge that we're building so jumping

into what the issue is that we're trying to solve so global b2b spend this is actually all comes in the form of invoices and unfortunately the payment term for a lot of invoices is really long the global average is about 60 days small businesses are freelancers they need financing to bridge this gap and it becomes a real problem for sustainable growth long term if they don't have financing for this time period and so we built centrifuge to give businesses greater access to financing and we think this unlocks value that has previously been inaccessible so our mission is to change the rules of global trade to

foster economic opportunity everywhere so look at our stack centrifuge OS allows businesses to exchange documents such as invoices on our peer-to-peer layer on top of this we've built send refuse chain to hold the single source of truth of these documents for all of the parties that are involved and send reviews chain also allows for anchors identities and the minting of NF TS we then built ten link a securitization protocol to optimize the risk allocation and open up access to financing for these documents for these assets and then this tin link gives access to the diva echo system so we see

centrifuge as a system of coordination for global trade it's designed to be minimally extractive and provide an incentive to connect profit driven businesses with their customers so we built this design for scale and we think that this is this vision that we have for our global trade protocol is why it needs to be public and openly accessible so how does centrifuge actually work today a company such as paper records signs and sends an invoice and sends it to Spotify Spotify verifies the receipt of that invoice and then paper records is able to then verify and anchor the

signed document hash of this invoice this signed document hash also contains both signatures of both paper records and Spotify and so you have this unalterable source of truth for the the asset itself and using all of this information paper records is then able to mint an NFT that represents this invoice and all this today is already live on aetherium and the cool part about having this on a public blockchain is that third parties can always get access granted to this system and so we're built on and loving aetherium but this has some downsides if the room is a world computer and it

serves many purposes and use cases and as a result a lot of operations are unnecessarily slow and costly so we built centrifuge chain to achieve efficiencies and new possibilities over this architecture so if you're even smolt a purpose it's designed to fit lots of different types of use cases it has high security guarantees it has a very large market cap and it is a really large ecosystem as evidenced by this great event there's community driven governance and and all of those things are wonderful but they also have drawbacks for center geesh so this leads to long wait times for our transactions and this depends on the gas price there's also really high cost for transactions so this anchor for example it costs about 10 Euro cents and

minting an N of T costs 170 there's also no efficient way to do privacy on aetherium and this is something that's really important for centrifuge and the reason why the cost of these transactions is so so important for us is because the average invoice volume of per day of a fortune 500 company is 18 thousand and so imagine paying 10 cents per invoice that's just not going to be viable for most businesses so these were the driving factors of centrifuge and so we think that it's really easy to use and I think probably makes more sense to

use etherium for low volume and really high value transactions but for this enterprise targeted really high volume privacy requiring use case we needed something that was going to be different and suit that specific use case for us so we built centrifuge chain 2 optimized specifically for the transactions that we require so we specifically wanted to optimize for cost there's less competition between transactions to get in the block on centrifuge chain and this the targeted the target that we have with centrifuge chain it also allows for faster execution of logic and

finality of transactions because they're optimized for our specific use case and we also are able to customize we're building with substrate and we can have custom modules such as being able to target storage specifically and so storage is more efficient and minimized because of our optimization and this actually also in turn encourages decentralization because there are less resources that are required to run a node and I would say one of the more important things is this last point here that we're really targeting a specific user as well as a specific privacy requiring use case so we're able to then target the specific use case with centrifuge chain going forward so we're also building this general-purpose substrate

bridge to aetherium and we think this is important because we need to be able to connect Center views chain to the defy eco system and right now that largely lives on the etherium and and we are also really big fans of the etherium community and we feel like we are a part of it and so we're joined to doing joint development of this bridge together with chain safe it's open source the first version it includes a trusted set up and it's just two-way transfers of ERC 22 native substrate currency but the next version will also include two-way transfers of NF TS as well so this is how we imagine sendroff usual

look together with centrifuge chain this bridge and bridging over to aetherium so this business can then mint a token on centrifuge chain send these invoices anchor these invoices and do all of this in a way that's much more cost and speed effective for them and then when they want to access financing they're able to use this bridge go over to aetherium and access defy there so we really think send review chain is the gateway for all off chain assets to the blockchain multiverse we are building on parity substrate so this really allows us to move faster and use a consistent

approach when building certain features and at the same time we're able to build this standard itis fridge to aetherium that can be reused by other projects and we hope it's reused by other projects as well and easily tap into the etherium ecosystem with this as well as the polka dot ecosystem at a future point in time so we really envision a larger ecosystem of many connected block chains and taps can live on aetherium and use data from other chains value can move freely and send a few chain can enable off chain assets to access financing through defy so send a fuse chain is a proof of stake chain it has its own token radio with economic incentives

that are similar to other proof of stake chains such as polka dot and we have a council right now with five seats our amber test net has launched so you can check it out on telemetry and you can already get started on amber now you can run a validator you can start integrating with centrifuge you can try to break it you could try to just use it ask questions and we'd love to hear them and yeah I think we're really excited to take this next step forward and maintenance is coming up so these are some links if you'd like to get involved and thank you for your time today feel free to ask us any questions I'm not

sure if I have a couple minutes for questions now yeah does anyone have a question it's okay if you don't yeah so what's kind of the plan to onboard the non-ecc crowd because I can see the value prop here and it seems really interesting and you Spotify for instance as an example yeah but and you've done a very good job at articulating quite complex ideas but how do you convince a retail company to use your platform yeah that's actually what Leah's focused on here in the print and we actually have a few partners that we were already

starting with um so I would encourage you to actually check out our medium blog if you want to learn more about those partnerships but I can briefly explain one of them there's a ohmygod coronavirus care there's a company called paper chain based in New York that takes and gathers data from Spotify actually and is able to then allow their users the artists to get financing for their music royalties and so we're working on a pilot together with them and we've actually done I think together 280,000 died of financing so far for this pilot and so these artists are able to get financing

actually whereas traditionally with Spotify they might get paid once or twice a year and so this is actually really speeding up the process for them to be able to get paid and in a way that like not only was it just not possible for them before but on top of that the interest rate actually isn't that high for them and I think this is also super important that we're not just creating something that no one's gonna use but it'll actually have a competitive interest rate in addition to providing financing to to those who had zero access so to answer your question I mean paper chain is a start-up so they're a little bit more open to using new kinds of things like this but we are also targeting enterprises and charge

traditional companies as well anything there we're not talking about send a fuse chain quite as much it's more about the product and what they're going to be able to use and offer to their users instead of just getting straight into the details from the beginning yeah thank you yeah any other questions I would take one more I think nope yeah hi just one more I understood correctly the license licenses for all the stuff you're building there is open source yep it's open source okay so it does includes this this stuff you're building now is is the other github open or they

open up when they're finished yep they're open you can check out our progress yeah well dip Thanks cool awesome thank you everyone [Applause] [Applause] so maybe the recording