Centrifuge

What is a centrifuge?

The Centrifuge Coin or CFG is native coin of the Centrifuge protocol. The latter is a blockchain network that connects real-world assets to the world of decentralized finance. It runs on the Polkadot platform.

CFG has several uses. First of all, he’s used to it cover transaction fees under the Centrifuge protocol and are paid to network participants as an incentive to ensure the security of the network.

Secondly, CFG serves governance token. Simply put, the Centrifuge coin gives owners a say in the development of the Centrifuge protocol.

The most important thing is that the Centrifuge coin has its own bridge to Ethereum.

There are 425,000,000 CFG coins in total. This makes the Centrifuge token supply deflationary. Simply put, this could mean that as CFG coins become rarer, the price of the centrifuge will increase. CFG coins were distributed as follows:

• 27% – main participants;
• 17.1% – Total sponsors;
• 11.8% – Endowment of the Centrifuge Fund;
• 10.8% – Development grants;
• 9.5% — Utility sale;
• 8.3% – Early ecosystem;
• 7.3% – Prizes and grants;
• 7.1% – community grants.

In addition, the total supply of CFG coins increases by 3% annually.

On May 26, 2021, Centrifuge conducted the first and second rounds of the CFG token sale. The organizer was CoinList. There was a limited supply of 17,000,000 CFG coins for each round. This amounts to a total supply of 34,000,000 CFG coins for the token sale.

Since CFG is a cryptocurrency, its price tends to fluctuate. Follow the swings with our tracker above. This will allow you to be aware of the current price of CFG.

What are the main characteristics of a centrifuge?

The centrifuge protocol allows users to subject their real-world assets to the tokenization process. In other words, using a centrifuge these real assets are turned into non-fungible tokens (NFTs)..

As discussed in the “What is a Centrifuge” section, Centrifuge was built on top of Polkadot. There are several reasons for this choice, the main one being almost instantaneous transactions with low fees.

The centrifuge works using Nominated Proof of Stake (NPoS) a consensus mechanism similar to the one Polkadot uses. In this case, CFG coin is paid out to users who participate in securing the network.

Additionally, Centrifuge is one of the first projects to launch a parachain, also known as Centrifuge Chain, on Polkadot.

Centrifuge leverages Ethereum liquidity. To access this liquidity, Centrifuge introduced Tinlake – decentralized finance application runs on Ethereum. At the time of writing, Tinlake was running on Ethereum, however the team intends to change this in the future by completely migrating the dApp to Centrifuge Chain.

Centrifuge Chain is a public blockchain developed using Parity Substrate. This is protected with Proof of Stake (PoS) consensus mechanism.

On the other hand, Tinlake facilitates the financing of natively tokenized real assets.

In addition, various decentralized finance protocols integrated into centrifuge protocol. The main advantage of this type of integration is additional uncorrelated collateral, which reduces overall risks.

One of the main goals of the project is to transfer monetary value from fiat currencies to cryptocurrency.

Who developed the centrifuge?

The Centrifuge cryptocurrency project was launched in 2017. It is a California-based blockchain company co-founded by entrepreneurs. Lucas Vogelsang And Martin Quensel. They are the CEO and COO of the project respectively.

Before Centrifuge, Lukas Vogelsang founded numerous companies, including daily deals platform DeinDeal.ch, which was acquired by Ringier, and communications platform Blue Chocolate Inc.

On the other hand, Martin Quensel was part of the founding team of Taulia Inc. – financial services provider. Here Lukas Vogelsang worked as a technical manager.

Don’t forget to check the centrifuge price using our tracker before you start the project.