Centrality (CENNZ) Records Significant Gain of 700% Since September

If you are a trader, then you must have heard about the impressive movements the CENNZ token has been doing of late. Within the first two weeks of October, CENNZ/BTC surged by 800% and has since been consolidating around the $0.11 mark. These kinds of movements shouldn’t be anything new to a seasoned trader. Under constant selling pressure throughout the bear market, CENNZ has smashed through an 11-Month high suggesting a bullish reversal. There have been plenty of mid-cap coins that suddenly surged and dipped in value thanks to careful market manipulation by rich whales. However, this is one of those unique cases where the rise in the price of the token is justified since it’s backed by solid fundamental principles.

What is Centrality?

Centrality is an Auckland-based venture studio working with innovators and entrepreneurs to create a decentralized marketplace for dApps. Users only need to rely on a single login and blockchain-based infrastructure for all these applications. Consisting of a highly qualified and diverse team spread out across Auckland (New Zealand), London, Melbourne, and Singapore - Centrality is uniquely positioned to bring in a whole new utility into this space. Technically speaking, Centrality’s cross-blockchain toolkit PL^G is built on top of Substrate and is compatible with the Polkadot network.

Centrality’s “Business in a Box” solution

Centrality takes care of the technological side of dApp creation in return for a fraction of its native tokens. This allows the dApps to entirely focus on business creation, partnerships, and user acquisition. Developers can use the following fundamental blocks to create an entire ecosystem:

• SingleSource: This is a decentralized virtual identity and risk scoring platform that allows users to have full control over their personal data. Using this, businesses will be able to easily meet anti-fraud regulations, including KYC (know your customer) requirements.

• Sylo: A decentralized smart wallet, social communication, and data storage platform which will allow its users to “connect from the safety of a wallet address, send and receive digital assets in chat, make audio and video calls, and store any ERC-20 compatible token.” It has become exceedingly popular and has managed over 65,000 downloads.

• Centrapay: This is Centrality’s payment platform that will allow for the easy management and exchange of digital tokens both within the Centrality ecosystem and the wider world. This can be used by both individual users and businesses.

• CENNZX: This is a cross-chain decentralized exchange. Its USP is that it aggregates prices from multiple providers and automatically gives traders the best price, with no platform fees.

These four tools have piqued the attention of several developers so much so that Centrality’s suite of dApps is currently adding 10,000 active users every single week! Centrality is also busy working on a patent-pending protocol named “Doughnut.” This protocol will allow for permissions and rules to be carried between different networks.

Centrality tokenomics

To understand the tokenomics of the CENNZ tokens, let’s gain a better understanding of token velocity.

Popularized by Multicoin’s Kyle Samani, “Token Velocity” is something that many use to determine the long-term valuation of a particular cryptocurrency. We can’t escape from the fact that the market is full of unnecessary tokens.

If you were to define Token Velocity in strictly mathematical terms, then it would look like this:

Token Velocity = Total Transactional Volume / Average Network Value.

If we were to flip the formula then:

Average Network Value = Total Transactional Volume / Token Velocity.

Now, that leads to two conclusions:

• More the token velocity, less the average network value.

• More the transactional volume, more the token velocity.

So tokens that have little to no value will usually be accumulated by investors and sold off to make profits. These tokens are only useful for speculative trading. We can also conclude that that tokens and cryptocurrencies which are not going to be frequently traded for a quick cash grab will have the potential to grow more valuable over time.

One of the methods used to decrease token velocity is staking via the Proof-of-Stake (PoS) consensus method. Centrality has a dual-token system with CENNZ and CentraPay. Validators can stake the publicly-traded CENNZ tokens and earn the Centrapay tokens as a reward. Unlike the CENNZ tokens, CentraPay is a stable coin, making it a solid medium of exchange. Since CentraPay is free from price volatility, the users are incentivized to use them within the Centrality network while staking the CENNZ tokens. This, in turn, reduces the velocity of CENNZ and helps in the increase of its valuation.Investors may be reacting to the fact that over 500M CENNZ tokens has been staked via the Centrality rewards programme that lets holder receive Centrapay rewards tokens.

Conclusion

Centrality is one of the most promising projects in the crypto space. By giving dApp developers a simple and straightforward method to create their applications, they will provide them with more opportunities to develop a successful product. Centrality has already delivered its phase 1 platform technology and received a stake in more than ten applications. To know more about this project, check out their whitepaper here.

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Posted from my blog with SteemPress : https://cryptohype.tech/centrality-cennz-records-significant-gain-of-700-since-september/

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