08:00 - 08:30, 7th Jan 2021

What can DeFi bring to Real Estate

Denis Petrovcic
Blocksquare
Host
Session Description
Would you believe if I told you there is a bank that issues loans to anyone, without exception? Or an exchange that processes $1B every day without relying on a single central authority to monitor it? These examples, MakerDAO (www.makerdao.com) and Uniswap (www.uniswap.org), are just the tip of the iceberg of what we call DeFi. DeFI stands for Decentralized Finance and has become one of the main drivers for using the Ethereum network and since 2018 became the basis of its capitalization and popularity. According to DeFI pulse (defipulse.com) there is currently more than $20B worth of crypto assets locked in DeFi application's smart contracts, which represents an impressive 200% growth since the beginning of 2020. Undoubtedly, DeFi is still tiny compared to the market of traditional, centralized financial services, but the very young market's growth should not be left unnoticed. The main principle of Decentralized Financial is accessibility to everyone without exception. All one needs to become included in this ecosystem of financial services is a computer with internet connection. The main challenges, however, are technical complexity and price volatility of crypto assets, making it quite hard for most people to engage in i.e. loans without risk of losing funds — if the value of your collateral falls below a defined % it will get liquidated and lost forever. No way to appeal! So, what has this got to do with Real Estate? Join me in this session, where we shall explore the possibilities and future scenarios of how DeFi could become the catalyst of change for real estate finance and investments.

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