Centrifuge – a decentralized asset finance protocol – has just won an auction for a parachain slot on Polkadot. Like other parachains in Polkadot’s second parachain auction group, it is set to launch on March 11.
Centrifuge Meets Polkadot
The protocol announced its auction victory in a blog post on Thursday. The team says they are “all systems go” to bring its functionality to Polkadot.
Centrifuge is used to link non-digital real-world assets to decentralized finance. It is intended to allow users to finance real estate and collect royalties without going through intermediaries and banks, among others.
Meanwhile, a ‘parachain’ is a blockchain that runs parallel to Polkadot’s central Relay chain, but with an application-specific data structure. They are designed to achieve scalability and added functionality for the Polkadot ecosystem.
The initial launch of the parachain would be an “empty shell”, in order to confirm its stability on Polkadot. This means that it will produce blocks, but without any functionality for the chain, nor any concept of governance, balance, staking or user accounts.
Afterward, the current Centrifuge chain will undergo a hard fork, transitioning from being a standalone chain to Polkadot’s 9th parachain. Upon launch, Tinlake – a Defi protocol and marketplace for real-world asset pools – will go live on the chain as well, connecting liquidity from both the Polkadot and Ethereum ecosystems.
“We can’t wait to launch Centrifuge as a parachain and start bringing RWAs to Polkadot,” Lucas Vogelsang – CEO and co-founder of Centrifuge – told CryptoPotato. “This wouldn’t be possible without the incredible support of our community!”
Centrifuge (CFG) is currently trading at $0.64, with a market cap of over $100 million.
Polkadot’s Developments
Two weeks ago, CryptoPotato reported Moonbeam’s launch as the first fully operational parachain on Polkadot. It won the second Polkadot parachain auction in October, securing nearly $1.5 billion in contributions from supporters. It already has over 80 projects waiting to be deployed in its ecosystem.
As a top 10 cryptocurrency, Polkadot may be on its way to mainstream. He is currently in competition with Spotify to be the official shirt sponsor of FC Barcelona.
