In the burgeoning world of Decentralized Finance (DeFi), there are still hurdles to clear on the path to global adoption. According to Enrico Rubboli, the CEO of Mintlayer, a layer 2 solution built on the Bitcoin blockchain, one such roadblock is the lack of integration with real-world assets. Rubboli asserts that for DeFi to flourish truly, it needs to open its doors to real-world assets. Here is where InQubeta, an AI-centric crypto project, steps in, promising to bridge this gap effectively.
The Challenge in DeFi: Integrating Real-World Assets
Rubboli’s statement captures a significant issue within the DeFi ecosystem. Currently, the majority of DeFi lending platforms only accept cryptocurrencies as collateral, which limits their accessibility to businesses that primarily deal with real-world assets. For DeFi to tap into the trillions of dollars tied up in real-world assets, it needs to devise mechanisms to utilize such assets as collateral.
However, this integration is fraught with difficulties. Real-world assets often require legal enforcement and localized knowledge, things that the DeFi ecosystem, in its present state, struggles with. Furthermore, issues related to the asset’s valuation, custody, and risk assessment pose substantial challenges.
InQubeta: Providing a Solution
InQubeta, with its groundbreaking approach, offers an innovative solution to this problem. As a pioneering AI-focused crypto project, it aims to allow fractional investment in AI startups using its native QUBE token. This unique proposition bridges real-world assets (AI startups) and the DeFi ecosystem.
Fractional Investment: Democratising Finance
By tokenizing equity in AI startups, InQubeta enables businesses to access the liquidity of the cryptocurrency market, potentially unlocking a new avenue for investment and funding. Fractional ownership reduces the barriers to entry, opening the way for more investors to participate in the growth of these startups.
At the same time, introducing real-world assets into the DeFi ecosystem enhances its overall value proposition. The ability to lend and borrow against these assets adds a new dimension to the DeFi landscape, making it more attractive to traditional investors and businesses.
InQubeta’s approach also addresses the issues of risk and trust in the DeFi sector. Utilizing top-notch tech for risk assessment and token valuation, InQubeta can significantly reduce the risk associated with real-world asset integration. Furthermore, the project’s decentralized model of governance and the transparency inherent to blockchain technology foster trust among participants.
Conclusion: An Evolving Ecosystem
The integration of real-world assets into the DeFi space represents a significant step forward in the evolution of the crypto sector. While there are hurdles to overcome, the efforts of projects like InQubeta highlight the potential of this amalgamation.
InQubeta’s unique fractional investment model is a testament to the innovative solutions the crypto sector can bring to longstanding issues in finance. As more projects explore similar paths, the convergence of DeFi and real-world assets could herald a new era in global finance, unlocking opportunities for investors and businesses alike. In such a dynamic landscape, InQubeta continues to solidify its role as a trailblazer, reshaping the contours of the crypto space.
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Source: https://www.cryptonewsz.com/inqubeta-bridges-the-gap-between-defi-and-real-world-assets/