INTRODUCTION TO CENTRIFUGE
(CFG)
Greetings, everyone!
One of the unsolved problems for large and medium-sized businesses is the delay and high cost of payments. Different business cycles meet and they need interaction, payment of bills, collection of receivables, and other financial transactions. The average maturity of the account is ~ 60 days. Younger companies can’t wait 60 days or more. Banks, in turn, do not want to work with small and medium-sized businesses by offering too expensive services to companies.
Global B2B spending is approximately $ 180 trillion.
Today we will look at the incredibly promising project Centrifuge.
Centrifuge is developing a blockchain-based decentralized protocol that aims to rethink how financial supply chains work, making them much more efficient and open.
Centrifuge technology.
The Сentrifuge chain is built on Polkadot, but the Dapp connects to Ethereum. This gives Centrifuge an advantage in accessing two of the largest crypto ecosystems: one for DeFi liquidity (ETH) and one for speed (DOT).
Centrifuge currently accepts DAI and cUSD (Celo USD) into its pools, and in the future can accept any stable coins such as Acala, Dai, or Celo. The team also works on money markets on both Compound and Aave.
Having won the parachain auction, the Centrifuge project will take one of the Polkadot slots — thereby gaining access to the network and the entire blockchain ecosystem.
What is a parachain?
If you have only recently become familiar with this concept and do not yet fully understand what parachains are. A parachain is a blockchain that has a link to a larger chain. The goal of the relay chain is security-by running a large number of validators and high stakes for all connected parachains. In the event that the project becomes a Polkadot parachain, it will outsource its security to achieve a higher level of security at a better price than if they were working on their own.
The centrifuge chain is optimized for specific applications. It makes no sense to fully build a Centrifuge solution on the Ethereum network, as such a product requires speed, cost, storage efficiency, privacy, and a large transaction volume. Ethereum can’t offer such a solution yet.
So, what is the mission of Centrifuge? The project wants to change the rules of world trade — creating economic opportunities for DeFi in the real world.
Putting aside the inefficiencies of traditional finance, the project team opens up opportunities to link assets such as invoices, real estate, and royalties to DeFi, and this without banks or other intermediaries. Just imagine the potential that decentralized finance offers + broad opportunities to finance businesses in any part of the world by unlocking value that was previously unavailable to the crypto industry. Providing liquidity is now available to everyone.
The main network of the project was launched in April 2020, and immediately after that, Tinlake Dapp was launched. Tinlake the first app for decentralized asset finance, this is an asset-backed lending app that allows users to access finance using DeFi. The assets are turned into NFTs in a Centrifuge chain, which are then funded through Tinlake. Tinlake currently funds more than 10 asset types and has a TVL worth more than $ 10 million.
Since the main role of network protection is assigned to Polkadot, the CFG token can fully devote itself to platform-specific utilities. CFG token holders can participate in the management (voting) of the network. You literally have the right to become a part of the system, set the amount of commissions, decide whether updates are necessary, implement or reject features in the platform. In other words, the user, the owner of the CFG token, is given the opportunity to feel like a part of a large corporation.
The CFG token also acts as a commission fee for: NFT mining, Tinlake financial transactions, and many features that developers promise in the future. The percentage of the transaction fee will be distributed among the picker nodes, and the remaining part will be burned at the rate set by the in-network management.
Traditional lenders or DeFi credit pools have the ability to verify the value of the NFT by in-chain identifiers and access documents off-chain, also verifying its authenticity by in-chain bindings. In other words, the Centrifuge platform provides new business opportunities, simplifies confirmations and electronic signatures using NFT, tokens, and the centrifuge network itself.
The Centrifuge project codifies businesses, organizations, and people in addition to the elementary units of B2B transactions, such as orders, deliveries, invoices, or money transfer information. This will release the data from closed and archaic platforms and will allow participants to exchange information with business partners, service providers, funding sources, or other users of the Protocol, creating the basis for more efficient and transparent supply chain, which could become a platform for open innovation in the financing of the supply chain (for more applications, services, etc.).
Sale on Coinlist
At the moment, Coinlist is registering for the public sale of the Centrifuge project. You can find all the information on the sale page:
Read a brief useful information about the sale.
Stake Service
Our team acts as a validator in the Centrifuge project:
If you are not yet the lucky owner of the project token-participate in the sale on Coinlist — after your coins are unlocked according to the terms of sale, you will multiply them by staking. More information on how to do this will be in one of our next articles!
Soon you will be able to familiarize yourself with all our offers on our new site:
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