Centrifuge was founded in 2017 with the goal of developing a decentralized protocol based on blockchain technology to rethink how businesses transact with each other in a more efficient and open manner. By liberating data from currently siloed enterprise systems, issues we know all too well such as invoice processing, resulting payment delays, and liquidity problems will be addressed. Through a new B2B open commerce protocol, Centrifuge tools can amalgamate business data on a decentralized public network, creating tremendous value and enabling new use cases and applications, including more open funding markets supply chains, smart contracts, and processing payments when goods and services are delivered. Centrifuge is founded by a team of Silicon Valley startup veterans with extensive experience in payment processing and fintech.

Built on its own developed Centrifuge Protocol, Centrifuge has created a lending platform called Tinlake. On the Tinlake platform, asset originators can tokenize real-world assets (invoices, mortgages, auto loans, or royalties) for debt financing; by streamlining the financing process and reducing costs, it increases the liquidity of physical assets and the transparency of investments. Currently, Centrifuge partners include Makerdao, AAVE, Paperchain, ConsolFreight, and others.

Radial Token

The Radial token (RAD) powers the Centrifuge Chain. RAD is designed to incentivize ideal behavior on the Centrifuge Chain - what is known as mechanism design - to create a robust, decentralized system. With RAD, users have a stake in the Centrifuge network, which can be used to pay transaction fees, stake to validators, and participate in governance on the Centrifuge chain. It will also incentivize validators and nominators through block rewards.

Analysis of the Centrifuge Protocol

The Centrifuge Chain allows businesses to convert real-world assets (RWAs) into non-fungible tokens (NFTs). This enables asset originators to place these NFTs as collateral in Tinlake pools on Ethereum. The Centrifuge Chain is an open-source Proof-of-Stake blockchain built for finance, driven by the Radial (RAD) token. Tinlake leverages the Centrifuge ecosystem, including the Centrifuge Chain and a P2P messaging protocol, to bring DeFi to a consumer-ready interface.

There are three key layers to how Centrifuge operates:
1. A P2P messaging protocol used to exchange information privately, decentralized, and trustlessly between investors, asset originators, data providers, and others.
2. A purpose-built PoS chain, based on Parity Substrate, with its utility and staking token Radial.
3. A suite of smart contracts, which we call Tinlake, that bundles these non-fungible assets and makes them native to DeFi.