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Cryptocurrencies/Coins/Centrifuge (CFG)
Centrifuge price, market cap on Coin360 heatmap

Centrifuge(CFG)

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$0.375504
(-2.61%)
0.00001556 BTC
Market Cap (Rank#235)
$113,502,281
4,705 BTC
Vol 24h
$316,261
13.1086 BTC
Circulating Supply
302,266,191
Max Supply
?
66 days agocryptodaily
Here’s How Liquidity Pools are Keeping DeFi Alive
There's no denying the fact that the concept of decentralized finance (DeFi) has garnered a lot of traction amongst crypto enthusiasts/ investors across the globe in recent years. In its most basic sense, the word DeFi can be thought of as an umbrella term that describes any financial product, or service that has been built using blockchain technology. To put things into perspective, the total volume locked (TVL) — i.e. the amount of capital — within the DeFi market currently stands at $107B, with conservatives estimates suggesting that this metric will touch a whopping $507.92 Billion by 2028 at a steady compound annual growth rate (CAGR) of 43.8%. That said, it is worth mentioning that the success of the global DeFi ecosystem hinges on a little concept known as ‘liquidity pools’. To put it simply, without them, popular activities such as decentralized lending, borrowing, or token-swapping would not be possible. To elaborate, liquidity pools are an innovation that is exclusive to the cryptoverse with there being no direct equivalent to it within the realm of traditional finance. Not only do liquidity pools help facilitate the core activities associated with any DeFi protocol, they also function as a means through which investors — with a high appetite for risk — can accrue handsome rewards within the shortest time period possible. What are liquidity pools (LP)? What are some different kinds of LPs? A liquidity pool can be envisioned as being a collection of funds locked within a smart contract, i.e. a self-executing contract where the terms and conditions of the deal have been pre-defined and written into lines of code. These funds can be used for a variety of purposes including decentralized trading, lending, borrowing, yield farming, development of synthetic assets, etc. There are a number of DeFi platforms in the market today making use of varying styles of liquidity pools to great effect. Centrifuge is one such offering, whose associated Tinlake ecosystem serves as a lending protocol as well as marketplace for real-world asset pools. Any investments made within the platform allow clients to reap incentives in the form of ‘CFG’ — Centrifuge’s native token offering. To elaborate, Tinlake allows originators and owners of assets in the real world — ranging from invoices, residential real-estate loans, etc — to seamlessly devise a pool of their assets and offer them to DeFi investors all across the globe. These assets can be used to generate stable yields while providing liquidity to issuers and borrowers operating within the ecosystem. Similarly, Balancer is another Ethereum-based liquidity pool designed to serve as a non-custodial portfolio manager and price sensor. When making use of the protocol, users cannot only harness the power of customizable pools but also earn trading fees by simply subtracting or adding liquidity to the ecosystem. As a result of employing such a modular pooling protocol, Balancer is able to provide support to multiple pooling options, including private, smart, or shared pools. Furthermore, liquidity pool owners on Balancer have the right to offer capital as well as alter the parameters of a private pool as they see fit. Why is liquidity key in DeFi? How is liquidity keeping DeFi going? Straight off the bat, it should be noted that whenever a protocol’s liquidity slips below a certain level, the issue of ‘high slippage’ arises, which is the gap between the expected price of a token and the rate at which it is actually traded. In addition to this slippage problem, low liquidity can also result in investors being stuck with tokens they cannot sell (which is what happens in the case of ‘rug pulls’, as well). As to how liquidity pools have been keeping the burgeoning DeFi ecosystem thriving, they serve as a means for investors and liquidity providers to earn token-based rewards. In fact, such a reward-based structure has given rise to various lucrative investment strategies. Yield Farming, for example, is one such option where investors can move assets across different protocols in order to reap high yields before they eventually dry up. Also, it is worth mentioning that most liquidity pools provide their users with LP tokens — i.e. receipts of sorts for network participation — which can later be swapped for rewards, either directly from the pool itself or staked on other protocols for the generation of additional yields. Looking ahead As the world continues to gravitate towards the use of finance options rooted in the ethos of decentralization, it will be interesting to see how more and more people continue to move towards liquidity-based platforms, especially since they stand to deliver yields that are are on a completely different level when compared with traditional options such as fixed deposits, savings bank accounts, etc. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice
361 day agocryptodaily
On-Chain Finance: Everything You Need to Know
With millions of users doing crypto transactions daily, the crypto industry has grown into a vast community. The booming crypto-economy has also increased the use of on-chain finance. Despite its large use cases, many enthusiasts are not familiar with the term. On-chain finance is the umbrella name for everything about on-chain crypto transactions. It defines the players in the industry and every other parameter that influences how the transactions work. In this article, we’ll discuss this financial trend in-depth. So, let's get to it! What is On-Chain Finance? On-chain finance covers everything about on-chain crypto transactions. On-chain transactions are cryptocurrency transactions that are done on the blockchain and depend on the state of the blockchain to be validated. That means on-chain transactions become valid only when the blockchain is updated and the transactions are added to the public ledger. A blockchain is an increasing list of records called blocks. These blocks are connected through cryptography. A block consists of a cryptographic hash (unique encryption data) of the previous block, a time stamp, and security features that hide vital details of network participants. A great side—and the most significant advantage of on-chain transactions—is the transaction security they provide. That's no surprise since transaction results can't be changed once confirmed and recorded on the blockchain. But, just as good as the security they offer, on-chain transactions will often require higher fees and longer processing time. Transactions done on a blockchain are validated by several participants on the network known as miners. And such transactions can only be declared valid when miners confirm their validity. Every blockchain network has a specified number of miner confirmations to validate transactions, affecting transaction processing time. After verification, the transaction details are added to the block and made public to participants on the blockchain. On-chain transactions are otherwise called blockchain transactions because—as we said earlier, they require a total update of the blockchain network. The completion time for an on-chain transaction also depends on the level of network congestion. That means your transactions can sometimes delay if there is a long queue of other transactions waiting to be confirmed. But, everything has a price, as they say, and faster on-chain transactions are no exception! You can make your transactions faster by paying a higher fee—but that also depends on the blockchain network and its policies. Generally, a transaction becomes irreversible once it receives above 51% of the network's participants have accepted that it is valid and have fully updated the ledger. A transaction may only be reversed when most of the blockchain's stakeholders reach a consensus to reverse the transaction. The participants or nodes can vote to accept or decline the proposed change. However, not all nodes have equal voting power. Nodes with greater holdings of coins have more votes than nodes with a relatively lesser number of holdings. If the change is accepted, it is included in the blockchain and baselined. That said, let's look at the governing system for on-chain finance. What is On-Chain Governance? On-chain governance is an organized system for managing and executing transactions done on a blockchain. On-chain governance rules are usually written as codes in the blockchain protocol. Developers in an on-chain governance system propose changes using code updates. And all the stakeholders cast votes to determine whether a proposed change will be accepted or not. A blockchain network contains a public or distributed ledger that follows the same principle as database sharing. Crypto transactions are recorded on a blockchain and distributed to all the blockchain participants. Every new transaction on a blockchain triggers the process of adding a new block to the blockchain. But there are consensus protocols that nodes must observe to validate a transaction. Miners or nodes confirm the data to ensure it's accurate and that all the conditions for authentication have been satisfied. Mining results are submitted to the blockchain network immediately after the verification process is completed. On submission, other participants or nodes evaluate the results and agree on whether to add the transaction to the blockchain. If the transaction is valid, a new block will be added to the blockchain. A block is a file in which data related to a blockchain is permanently recorded. You may think of it as a page of a record book or ledger. It is a permanent record of a crypto transaction. Miners involved get rewarded for their efforts once a block is created for a transaction on a blockchain. The mining process described above is known as a Proof of Work (PoW) system. The PoW system requires miners or nodes to expend a reasonable amount of computational effort to deter fraudulent activities on a blockchain transaction. For over a decade, the proof of work system has been used to prevent malicious attacks on blockchain transactions. Proof of Work is a decentralized authentication process that requires nodes of a network to solve random mathematical puzzles (work) to prevent intruders from accessing the system. The system is popular among miners for mining new tokens and validating transactions. The online space is vast, and there's the good (general users), the bad, and the ugly players (hackers and fraudsters). Most crypto blockchains like Bitcoin, etc., have improved transaction security, thanks to the Proof of Work system. Crypto users now do peer-to-peer transactions without fear of compromise or the need for a third party. Stakeholders In On-Chain Governance There are three major parties in the on-chain governance system, and they work hand-in-hand to validate blockchain transactions. These stakeholders and/or devices with which they connect to the blockchain are also called nodes. They include the miners, the developers, and the users. Let's talk about them in detail below; #1. Miners Miners are those who operate the nodes, which validate transactions on a blockchain. A node here is a computer that connects to a blockchain network. The node or computer supports the blockchain by validating transactions. Miners use these high-powered computers (nodes) to solve random and complex mathematical problems. These math problems are so complex they defy being solved by hand. They are also so complicated they require so much work input from powerful computers. There are two significant functions credited to miners. First, when they solve arbitrary math problems with nodes, they produce new units of a blockchain's cryptocurrency. Now, that's no different from what miners do when they extract raw diamond or gold from below the earth's surface. The other function of miners is transaction security. Miners solve computational math problems to improve the safety of crypto transactions within a blockchain by verifying transaction data before adding the transaction's block to the blockchain. #2. Developers Developers in an on-chain governance setting propose changes with code updates. The blockchain stakeholders usually cast votes to determine whether or not a proposed change will be implemented on the network. In on-chain finance, core blockchain developers design the architecture of a blockchain network. They also design the consensus protocols, core algorithms, and security patterns for the network. However, blockchain software developers use the already designed architecture and protocols to develop decentralized applications powered by blockchain technology. #3. Users or Participants Users are people (individuals or groups) who use or invest in cryptocurrencies. Participants (nodes) on a blockchain can vote to validate or decline a proposed change, but all participants don't have equal voting power. Nodes with greater cryptocurrency holdings rank higher in votes than those with smaller cryptocurrency holdings. Once a change is accepted, it is added to the blockchain. On-chain governance decentralizes cryptocurrency transactions by actively including all the nodes or participants on a blockchain in decision-making processes. However, critics of on-chain governance express concern over how nodes with greater crypto holdings may take advantage of the system for their personal gain. Critics further insist that on-chain governance takes a good part of decision-making power from miners and developers and gives it to users and investors. And, unlike miners and developers interested in securing transactions and developing better network protocols, users may primarily be interested in maximizing profits. However, the decentralized and reward-based features of on-chain governance continually increase the system's popularity with blockchains. Timing In On-Chain Finance On-chain transactions need to be sufficiently verified and authenticated by the stakeholders on the network before confirmation, which could take a long time. Remember that miners have to solve arbitrary and complex math problems before a block is added to a blockchain. That further explains why on-chain transactions take time. So, without participants' activities, on-chain transactions, as you might have imagined, would happen in real-time. When there's a high volume of transactions on a network, the miners may take longer to validate the transactions, especially if there's a limited supply of miners. In that case, users must wait till their transactions are verified or pay a higher transaction fee for speedier validation. Blockchains may provide instant transactions in their early stages. The faster speed is often because of low transaction volume at the onset. Also, new cryptocurrencies and network protocols that offer instant settlement are in high demand in the crypto industry. Costing In On-Chain Finance The cost of an on-chain transaction depends on miners. Miners charge a fee to speed up the validation and authentication of a cryptocurrency transaction. This fee is usually high, but it also depends on the transaction volume. Most of the established blockchains charge higher fees because of their miners' high volume of transactions. On the other hand, newer blockchains with lower transaction volumes charge low or zero fees. Practical Examples of On-Chain Finance Most of today's popular blockchains are already running on-chain transactions, the most popular of them being Bitcoin and Ethereum. But Bitcoin's major issue as an on-chain network is what's popularly known as the Bitcoin Scalability Problem. It refers to the limited ability of the Bitcoin blockchain to process large volumes of transaction data within a short time. The scalability problem of Bitcoin is connected with the limited size and frequency of blocks in its Bitcoin blockchain. Bitcoin has a block size limit of 1MB, and it takes about ten minutes to create a block on the bitcoin network. The slow block creation time, together with the limited block size, greatly impedes the blockchain's throughput. The Bitcoin network's estimated transaction processing capacity is from 3.3 to 7 transactions per second. And although Bitcoin is becoming globally accepted for making payments, it still doesn't even come close to Mastercard, which processes over 4000 payments per second. The Bitcoin Scalability problem is the reason it was forked in 2017. A Fork is a process of increasing a network's transaction processing limit by making relevant changes to its technical workings. The fork on Bitcoin resulted in Bitcoin Cash representing its transactions in 8-megabyte blocks—much better than Bitcoin's 1-megabyte blocks. The bigger block size of the Bitcoin Cash network means more transactions can fit into a unit of work, which implies lower transaction fees and faster processing time. Also, because its transactions take place on its self-sustained network with its specifications and rules, Bitcoin Cash transactions are considered on-chain. Another real-world application of on-chain finance is Centrifuge. Powered by the Centrifuge Token (CFG), Centrifuge bridges or connects real-world assets to DeFi (Decentralized Finance). As such, the platform creates a fusion between off-chain and on-chain transactions. To make this work, it launched two different products, which are Tinlake and Centrifuge Chain. While Tinlake allows users to borrow on-chain assets such as DAI, Centrifuge Chain makes it possible for borrowers to use off-chain assets like royalties, real estate, and invoices for transactions. Centrifuge Chain achieves this by converting the assets to NFTs before users could use them for any on-chain transaction. This real-world application helps borrowers (including SMEs (Small and Medium-scale Enterprises) finance their real-world assets independent of banks and other intermediaries. Conclusion On-chain finance has greatly decentralized blockchain activities, making it possible for every stakeholder on a network to participate in decision-making processes and earn incentives. Nodes are allowed to analyze the advantages and disadvantages of a proposed change and vote whether or not to implement it. And despite much criticism, more networks are adopting on-chain governance. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Centrifuge

The live price of Centrifuge (CFG) today is 0.375504 USD, and with the current circulating supply of Centrifuge at 302,266,191 CFG, its market capitalization stands at 113,502,281 USD. In the last 24 hours CFG price has moved -0.005622 USD or -0.01% while 331,277 USD worth of CFG has been traded on various exchanges. The current valuation of CFG puts it at #235 in cryptocurrency rankings based on market capitalization.

Learn more about the Centrifuge blockchain network and how it works or follow the price of its native cryptocurrency CFG and the broader market with our unique COIN360 cryptocurrency heatmap.

Centrifuge Price0.375504 USD
Market Rank#235
Market Cap113,502,281 USD
24h Volume316,261 USD
Circulating Supply302,266,191 CFG
Max SupplyNo Data
Yesterday's Market Cap115,612,960 USD
Yesterday's Open / Close0.388109 USD / 0.382487 USD
Yesterday's High / Low0.397895 USD / 0.379536 USD
Yesterday's Change
-0.01% ( 0.005622 USD )
Yesterday's Volume331,276.50 USD
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