Coin Vs. Coin: KNC/CENNZ
Marketplace cryptocurrencies – utility tokens designed for a particular blockchain platform – serve various purposes within their respective ecosystems but, in most cases, are used to access decentralized applications (dApps). Two top ten marketplace cryptocurrencies are Kyber Network KNC (#5) and Centrality CENNZ (#10). Looking into a KNC/CENNZ comparison shows how marketplace cryptos are a key aspect of dApp usage.
Kyber Network
Kyber is a decentralized liquidity pool built on Ethereum that aims to facilitate the seamless exchange of digital assets, including cryptocurrencies, through a network of liquidity providers. The Kyber Network native cryptocurrency is called Kyber Network Crystal v2 (KNC). Investors can earn rewards and vote in the KyberDAO.
The primary purpose of Kyber Network is to address the liquidity challenges faced by dApps and users in the blockchain ecosystem. It enables developers to integrate the Kyber protocol into their applications, allowing users to trade tokens directly from their wallets without traditional exchanges.
Kyber Network utilizes a reserve system where individuals can contribute tokens to liquidity pools, ensuring a constant supply of tokens for trading. When a user initiates a trade, Kyber Network automatically sources the best available rates from the liquidity pools to execute the transaction. This is an important mechanism to safeguard trades and transactions from illiquidity, as investors saw last year with the LUNA and FTT tokens.
Centrality
Centrality is a blockchain platform and ecosystem that aims to enable the development and deployment of dApps and services. The platform’s native crypto CENNZ is used for accessing dApps, staking rewards, and participation in the governance of Centrality.
Centrality provides various services and dApps covering various sectors of the cryptocurrency market, including finance, gaming, healthcare, and more. The platform strives to create an interconnected ecosystem where different dApps can interact and leverage shared resources and functionalities.
Similarities
Decentralized Infrastructure: Both provide a decentralized infrastructure and tools to build and deploy dApps on their respective platforms.
Native Cryptocurrency: Kyber’s KNC and Centrality’s CENNZ are native cryptos, playing an essential role in each network. Facilitating transactions, staking, and governance voting.
Liquidity Solutions: Both platforms provide decentralized liquidity to drive various operations on their platforms, such as trades directly from a wallet and collaborating and sharing resources among different dApps.
Governance Participation: KNC holders participate in the KyberDAO and CENNZ vote proposals and decisions about the Centrality ecosystem.
Differences
Focus and Use Cases: KyberNetwork primarily focuses on decentralized liquidity provision and token swaps. Centrality aims to create a platform and ecosystem for building and deploying dApps across various industries.
Architecture and Blockchain Compatibility: Kyber Network is built on the Ethereum blockchain and leverages its smart contract capabilities, allowing users to trade ERC-20 tokens. Centrality has its own blockchain infrastructure, enabling the development of dApps and platform-specific services.
Token Usage and Staking: KNC is primarily used for governance and protocol upgrades. CENNZ has a broader utility that includes facilitating payments and access to services.
Market Presence and Adoption: Kyber Network has gained significant adoption and usage as a decentralized liquidity protocol within Ethereum, integrating with several wallets and dApps. Centrality has a more limited market presence and adoption due to its narrower focus which targets dApp developers.
KNC/CENNZ Comparison
After the frauds and bankruptcies in the crypto market last year, it may surprise some that several marketplace tokens are still doing well. The KNC/CENNZ comparison shows how important it is to investors for blockchain projects to substantiate their liquidity and prove their utility. There is not much, if any, patience left for blockchain companies to offer anything less.
From their purpose and focus to their compatibility and market adoption, KNC and CENNZ have done much to rebuild the reputation of blockchain and crypto. By targeting dApp developers, these two projects are working to reestablish crypto as a serious asset by focusing on utility rather than profit.
