What is Centrality (CENNZ)? How Does It Work?
Take a closer look and learn all about Centrality (CENNZ), how it works, and the innovations it brings to the defi space.
Cryptocurrency is gaining popularity day by day, not only for investment opportunities, but also for the anonymity of payments, the transparency of transactions and the decentralisation of currency systems.
There is no doubt that the value of cryptocurrencies are defined by their roadmap and how much they can solve the issue. Within the crypto space, Centrality aims to provide a system where people can control their data by themselves easily and securely.
We’ll be taking a closer look at Centrality, how it works, and how their roadmap may potentially shape the future of the defi space.
- Centrality is a blockchain platform that supports the development of Dapps (decentralised applications) with an emphasis on user-experience.
- Centrality aims to promote and accelerate the adoption of blockchain technology by focusing on mass-use cases for the users, eliminating existing barriers and simplifying the process for all users.
What is Centrality?
Centrality is a New Zealand-based blockchain platform that aims to build an ecosystem where decentralised applications (DApps) can be built and used by people across the world.
They have their own network known as CENZnet. It is powered by the Centrality token (CENNZ and CPAY) and can be used to purchase services and products on the platform.
The team consists of 75 people around the world from Auckland, Singapore, Melbourne, and London. They want to create a marketplace where people can control their data.
Centrality uses smart contracts for various types of purposes that can be used to share revenue, pay merchants, rewards for the holders, exchange tokens, and manage identity.
Further Reading: What is Cryptocurrency?
How Does Centrality Work?
Centrality makes use of what’s known as a permissioned blockchain, a blockchain platform that functions just as it sounds, requiring authorised permission before accessing the network. In fact, CENNZnet, Centrality’s network, is the world’s first permissioned public blockchain.
Centrality uses a proof-of-stake mechanism where users hold CENNZ tokens to provide the required resources for the network.
The higher your stake, the more resources you have to contribute to the network. You will get rewarded after validating the transactions on their platform.
It uses a blockchain protocol called “Doughnut,” which stands for decentralised anonymous user internet protocol. It’s designed to let users control their own data without worrying about privacy loss or tracking by third parties.
Centrality is a platform that relies on community management. Whenever they want to make a major decision, the community will be asked to vote on it. The purpose of this is to ensure that everyone in the community has equal say in making the decision.
This also means that centrality is a good place for start-ups to gather feedback from their target market and improve their products based on those feedbacks.
Readmore: What is blockchain technology?
Tokenomics is the study of economics that applies to the world of digital tokens. In the crypto realm, we all know about the importance of tokenomics. Centrality tokenomics is really unique, they have a dual token economy.
The CENNZ Token is used for staking and governance which have 120 Billion CENZZ and then CPAY acts like a stable coin used for network transactions and block rewards.
As a beginner you might get overwhelmed with this. Why do they need to have two tokens in one network? Regardings to their website, they have mentioned that they want to position themselves with developers in mind.
In order to make your app profitable, it must be scalable, secure, reliable and fast. Centrality provides these services to ensure your success as an entrepreneur or business owner in the blockchain industry.
The dual token system allows us to predict the cost of each transaction with more accuracy than any other blockchain platform in the world today.
The CPAY token has a dual nature: its value can be described as a commodity or a currency. This means that CPAY can be used to purchase goods and services, but it also functions as an investment vehicle.
It can remain stable because the supply and demand match the price over the time in economics — we call it equilibrium. This system will benefit both stakers and users.
When the network demand is high then the more CPAY is minted which means higher CPAY block rewards per CENNZ it is really beneficial for the stakers. In addition for users, when the price per CPAY should stay stable even if there is higher demand.
Where Can I Get a CENNZnet Wallet?
One of the official wallets that support the centrality ecosystem is the CENNZnet extension. This wallet is only available in desktop mode for now.
The CENNZnet extension provides users with a simple interface that allows them to easily access their funds from any computer or mobile device.
The wallet has been designed to be intuitive so that you can start using it immediately without having to worry about learning new things in order to navigate the system.
Once you have downloaded and installed CENNZnet Extension on your browser, you will need to create an account in order to fund your wallet.
Once you have completed these steps, you will be ready to start sending and receiving tokens on the Centrality network!
What is the future of Centrality?
Centrality is a blockchain platform designed to build and run decentralised applications (dApps).
The company has launched its own platform and dApp called CENNZ, which is a decentralised exchange for digital assets. The team has also created several other products using the Centrality platform and has plans to create more dApps in the future.
The future of Centrality depends on many factors. First, it depends on how well their existing products are adopted by users. If more people use their existing dApps, then that would be good for the future of Centrality.
Second, it depends on whether or not more people will use their other products and services offered by Centrality. If more people use these products, then that would be good for the future of Centrality.
Third, it depends on whether or not more companies decide to build their own dApps using Centrality as a platform for building dApps. If this happens, then that would be good for the future of Centrality because it would mean that many companies were using their platform and software development kit (SDK).
Fourth, it depends on whether or not companies decide to use the CENNZ token as a means of payment in their dApps built with. For now they already have some partnerships using their platform.
The team seems to have a good vision and they have the skills to make it happen. They also have a good track record of developing software products.
This means that if you decide to invest in Centrality tokens today, you will be investing in something that has already proven its worth in this industry over time.
Further reading: Explore all things crypto.
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Disclaimer: Information is current as at the date of publication. This is general information only and is not intended to be advice. Crypto is volatile, carries risk and the value can go up and down. Past performance is not an indicator of future returns. Please do your own research.
Last updated July 10, 2023