CFGUSDC
CFG / USD Coin
crypto

Centrifuge is a decentralized asset financing protocol. Using Centrifuge, businesses can tokenize real-world assets and use them as collateral to access financing through Tinlake, the asset-backed lending Dapp. Tinlake connects users to the DeFi ecosystem and enables borrowing from many other protocols. The centrifuge technology stack consists of the following layers: P2P Messaging Protocol - This is a protocol to store and exchange business documents in a private, secure way. Nodes on the Centrifuge peer-to-peer network communicate using the Centrifuge Wire Protocol, which utilizes libp2p streams as the underlying network transport layer. Wire level message encoding for the Centrifuge protocol is performed by the P2P messenger utility. A generic P2P message envelope uses Google Protobufs. Use of Google Protobufs: A document consists of two parts: The schema fields depend on the document type (e.g. Purchase Order, Invoice). The core document fields are part of every document. Protobuf's schema definitions provide significant built-in validation by enforcing types and fields. When exchanging the document via P2P messages, they are marshaled into the protobuf byte format and thus type-enforced. Because of Protobuf, the validation rules can be skipped and assume that a user would always reject a document that is an invalid protobuf message. Hence, Google Protobufs is used by the messenger to offer a common interface for all Centrifuge p2p network traffic. Centrifuge Chain - Centrifuge Chain is the gateway for RWA to the Blockchain Multiverse. Centrifuge Chain was built on Parity Substrate with an initial bridge to Ethereum. Substrate allows Centrifuge to easily tap into the Polkadot ecosystem and to connect with other blockchains that support the standard, which in turn increases interoperability. Centrifuge Chain Architecture - Centrifuge Chain uses its own native token - the Centrifuge (CFG) token. It also incentivizes Validators and Nominators to participate through a block reward. Centrifuge Chain is built on Parity Substrate, and relies on staked Validators to come to a consensus over 3 components to commit blocks to the blockchain: BABE - block production/authorship GRANDPA - finality gadget NPoS - Validator selection algorithm Tokenization of Documents using NFTs, Anchors, and Identities - Centrifuge provides users with the ability to remove intermediaries and create financial business documents as Non-Fungible Tokens (NFTs) that have long-term verifiability, are censorship-resistant, and are stored and processed in a decentralized fashion. An anchor is the root hash of a document stored in an Ethereum smart contract called Anchor- Repository. Anchor repository allows NFT contracts to validate Merkle Proofs which is the core of NFT minting by NFT contracts. A collaborator can verify the received document is actually an anchor that has been committed and which other collaborators signed the document. Centrifuge Identity (CentrifugeID) is a unique ID assigned to a participant of Centrifuge in a network. Centrifuge identities smart contracts on Ethereum. It keeps track of the different cryptographic keys in use and enforces that this data can only be modified by the creator and/or a delegate chosen by the creators. Identity has the following credentials: Peer to Peer Messaging Encryption Keys: is used for message encryption. These keys are used to identify the nodes over the P2P network and establish an encrypted communication channel between peers. Signing Keys: Documents in Centrifuge are signed with signing keys. These signatures are a part of the Merkle root that is anchored on the public chain and verifiable at a later time. Ethereum Accounts: When interacting with a smart contract on Ethereum, an account needs to be linked to the identity to act on its behalf. The linked Ethereum accounts are the accounts that are allowed to interact with DApps utilizing Centrifuge Dapps (Tinlake) - Tinlake is a marketplace of asset pools bringing together Asset Originators and Investors. Ultimately, Tinlake will become a fully decentralized financing protocol that interoperates with different blockchains and plugs into a variety of funding sources. Tinlake has two tokens 'Tin' and 'Drop' to represent users' investment. TIN tokens represent the junior tranche, where yields are higher, but losses (e.g. in the case of a default) are taken first. DROP tokens represent the senior tranche, where yields are lower and more stable, and losses are taken last. Tinlake pools are set up as "revolving" (hence the name revolving pool) or open-ended pools where investors can join and leave at any time and the provided capital can be continuously re-deployed by the Asset Originator unless it is redeemed by the investors. Revolving pools allow investors to invest/redeem independently at any time. A decentralized solver mechanism matches investments and redemptions and ensures that certain preferences are considered, and the pool's risk metrics are intact. This ensures that Asset Originators have a constant source of liquidity while investors can flexibly invest and redeem. Centrifuge Protocol The components of the Centrifuge protocol are a collection of Ethereum smart contracts, Substrate Pallets, and a peer-to-peer network implemented on libp2p. Ethereum smart contracts are used for maintaining identities in a similar format to the ERC725 standard and, minting NFTs from off-chain Centrifuge documents. Substrate Pallets are used for anchoring state commitments. The peer-to-peer network is used for private, off-chain transactions and business document exchange.