Benefits

Benefits of conducting Real World Asset transactions on the blockchain

The initial application of blockchains was the creation and movement of tokens, which represent a unit of value (e.g. BTC). However, it was the creation of DeFi (decentralized finance) that showcased the true potential of public blockchains. In particular, DeFi applications benefit from the following properties:

• Atomic settlement: The combination of cryptography and decentralized consensus leads to strong finality guarantees of economic transactions—mitigating double-spend attacks and fraud in a tamper-resistant manner, thereby increasing capital efficiency and reducing systemic risks.

• Transparency: Public block explorers and data dashboards provide granular and clear insight into the risk exposure and collateralization of DeFi as a whole. Furthermore, the source code of DeFi apps is open-source and can be reviewed by anyone. View our blockchain transactions here.

• User control: Non-custodial asset management is achieved through private keys, allowing DeFi apps to interface with assets in a trust-minimized manner. Decentralized autonomous organizations (DAOs) also allow for collective ownership of assets and applications.

• Reduced costs: DeFi apps operate more efficiently and autonomously since the need for intermediaries is minimized. This facilitates low switching costs for moving capital across apps, creating an efficient market for app-level fees. Scaling technologies also make microtransactions feasible by reducing network-level fees.