What Is Canto Blockchain?
Do you think there’s a defi platform that doesn’t even have a foundation or pre-sale option? A public platform that has the title of being permissionless! Well, there is one—the Canto Blockchain. And I guess it’s the only one that has launched with such unique features till now.
You must be wondering how this platform is actually working then. This blog post has answers to all your queries. Here we’ll discuss the basics, features, and uniqueness of Canto blockchain. We’ll also have a sneak peek into its role in the DeFi ecosystem. Let’s get started.
What is Canto?
Canto is a permissionless, easy-to-use, and uniquely designed layer 1 blockchain model. It is designed with the purpose of solving the problems and fulfilling the promises decentralized finance DeFi has made. A promise of easily accessible, totally transparent, and completely decentralized models.
Canto has no basic foundation or support system. It also lacks presale options and is only secured by its validators. This new model was made in cooperation with Ethereum Virtual Machine EVM to make decentralized finance (DeFi) easier and more accessible. It was created because existing blockchains often have high fees and complicated processes, making it difficult for people to use DeFi. Canto aims to solve these problems by providing a user-friendly and low-cost platform.
It works on a proof-of-stake (PoS) mechanism and uses Inter-Blockchain Communication (IBC) to bridge different blockchain networks with one another. However, the most important and loved feature is its Free Public Infrastructure (FPI). It does not have any protocol-level fee. This means users of this model do not have to worry about fees to use the basic yet important functions of blockchain.
The Owners of Canto
Canto isn't run by a company or a central team like many other projects. It's built and maintained by its community. This means there's no single boss or foundation making all the decisions. Instead, it's a group effort.
Some of the most prominent figures of this team are Scott Lewis, the co-founder of DeFi Pulse and Slingshot, and the Plex team. Scott Lewis is handling the majority of the work; Plex, on the other hand, is dealing with the development and maintenance of the model.
Another top contributor is NeoBase; it is responsible for providing the tools, resources, and information they need to understand and interact with the Canto ecosystem. All these contributors worked together, and their combined efforts made this decentralized and community-driven project a reality.
How Does Canto Work?
Canto is part of the Cosmos network, which includes various blockchains, apps, and services. It's based on Evmos, another blockchain known for being highly scalable and using a proof-of-stake system, meaning it's secure and energy-efficient. Canto was created using Cosmos' development tools and operates on a system that ensures reliable and quick consensus. It's also compatible with Ethereum, so developers can use Ethereum smart contracts on Canto.
The Canto project focuses on three main elements that the team believes are essential for a healthy decentralized finance (DeFi) system. These elements are offered as public utilities, which means that they are available to everyone without extra costs. This approach sets Canto apart from other DeFi projects, which often charge fees and restrict access.
To avoid extra costs for users, the Canto decentralized exchange (DEX) has no governing body, cannot create its own token, and cannot add extra fees. The lending market will be managed by Canto's stakeholders, who are invested in the ecosystem's growth and will make decisions to support developers and users. Additionally, any interest earned from Canto’s currency will be used to fund public projects, with no additional costs added at the protocol level.
In short, Canto operates using a combination of technologies designed for speed, security, and interoperability. It allows its users to access its basic features without having to pay a fee. This model is ungoverned; it has no token at all! It is controlled by stakeholders who are entirely focused on making the model better than before instead of just seeing it as a money-making machine.
Major Features of Canto:
Canto has a mission of simplifying the decentralized ecosystem with its easy-to-use interface and features. Here are the major features of Canto Blockchain:
1. Canto DEX
Canto has an aim to avoid any harmful behavior or possibility of attacks to ensure the safety of its users. It has no official website or governance, and it operates forever without a single penny of fee.
Canto DEX is the key component of the Canto platform. Users can access it through a platform called Slingshot, which combines different DEXs into one interface. It allows them to use several features at a time and improves communication between various DEXs.
This DEX uses an automated market maker (AMM) to fix the prices of its assets. The liquidity of this pool is determined by its users, who regularly participate in providing assets. Like Uniswap, Canto has both full-range liquidity pools and concentrated liquidity pools to ensure stablecoins and other important assets have deep liquidity.
Users who provide liquidity receive LP tokens and have literally no fee for liquidity providers as well. This makes trading extremely easy for traders. Canto has five incentivized liquidity pools:
- USDC/NOTE (concentrated liquidity)
- USDT/NOTE (concentrated liquidity)
- NOTE/CANTO (full-range liquidity)
- CANTO/ETH (full-range liquidity)
- CANTO/ATOM (full-range liquidity)
In simple terms, Canto offers a free and secure DEX platform where users can trade and provide liquidity without worrying about fees, ensuring fair and constant access to liquidity.
2. Canto Lending Market (CLM)
The Canto Lending Market (CLM) is a decentralized lending and borrowing protocol built specifically for Canto. This market is managed by the Canto stakers, and it allows its users to use tokens from Canto's own decentralized exchange as collateral, which means they can be put into the lending market to be used as supply. However, people can't borrow these tokens directly.
They need to verify themselves as people who are genuinely interested in the betterment and growth of the system. They want to create a healthy environment for both developers and users. Canto is really paying attention to becoming one of the most loved DeFi systems.
3. Canto Unit of Account (Note)
The Canto Unit of Account, called NOTE, is the main token used for managing and making decisions in the Canto network. Unlike other blockchain tokens that are often used for trading and making profits, NOTE was given only to people who helped build and secure the Canto network. This method was chosen to encourage a community-focused way of managing the network.
People who hold NOTE tokens can vote on important decisions, such as updates to the network, changes in rules, and how community resources are used. NOTE is designed to be useful for governance, not for trading to make money. This design shows Canto's dedication to creating a sustainable and community-driven financial system. The way NOTE is distributed and its role in governance is key to achieving Canto's vision of a decentralized and user-owned network.
How to Use Canto Properly?
To use this model properly, you have to connect your wallet to it to transfer your assets. Here’s a step-by-step guide on how to use Canto properly:
1. Connect Your Wallet:
You'll need a compatible wallet to use the model. We recommend you go for MetaMask for the Canto platform. For MetaMask, use the following steps:
Step 1: Log into your account
Step 2: Click on the network dropdown menu.
Step 3: Click on “Add Network” option
Step 4: Choose "Add a network manually."
Step 5: Enter the following details:
- Network Name: Canto
- New RPC URL: https://canto.evm.chandrastation.com
- Chain ID: 7700
- Currency Symbol: CANTO
- Block Explorer URL: https://www.canto.explorer.solidstake.io/
Step 6: Click "Save."
You can also connect your wallet automatically via Canto DEX.
2. Bridge Assets to Canto:
After adding a wallet, you can now bridge your assets easily. Here are guidelines for bridging Ethereum assets.
Step 1: Go to “Canto Bridge.”
Step 2: Click on the “Generate a Public Key” option
Step 3: Confirm your action.
Step 4: Now you can bridge your assets easily.
3. Stake your CANTO:
Step 1: Use a compatible wallet.
Step 2: Go to the stake section of your wallet.
Step 3: Choose a validator to delegate your CANTO to. Research validators based on their commission rate and performance.
Step 4: Input the number of tokens you are intending to stake.
Step 5: Confirm the transaction.
Note: You have to pay 0.08 CANTO for staking and 1 CANTO for claiming your rewards, which are credited every 24 hours.
CANTO Takenomics:
There are 1 billion CANTO tokens in existence, but only 150 million are actively available for trading. This circulating supply is distributed as:
130,000,000 CANTO, or almost 13%, is kept for the contributors who have initially participated in the model.
20,000,000 CANTO tokens, or 2%, are for those who participated in the launch of the chestnut.
450 million, or 45% of the CANTO tokens are reserved for long-term liquidity mining.
350,000,000, or 35% of tokens, is kept for medium-term use of tokens in the upcoming months or years.
The remaining 50,000,000 tokens are kept for future requirements.
Canto in DeFi Ecosystem:
The goal of Canto is to fix the issues people face when using decentralized finance. Its main goal is to create a free public infrastructure for key DeFi parts. Canto focuses on providing these fundamental tools without taking a cut or charging fees for their basic use. This means developers can build DeFi apps on Canto without worrying about high costs for core functions. By offering these free public goods, Canto aims to make DeFi more accessible and efficient, fostering innovation and growth in the overall DeFi space.
Pros and Cons of Choosing Canto
Here are a few pros and cons of Canto that you need to consider before opting for it:
Pros:
No Fees at all: This new model has no protocol-level fees for users making transactions or developers building applications. This feature has greatly increased the activity level on the network.
Ability to Connect: Canto can easily connect with other blockchains in the Cosmos network, allowing for more collaboration and easier movement of assets.
Faster and Cheaper: Canto aims to provide better speed and affordability as compared to the older blockchain platforms, making it more efficient for everyday use.
Cons:
Under Growth: Canto is a relatively new blockchain, so it's still under development. This means there's more risk for investors because it hasn't been around as long and might have some unexpected problems.
Tough Competition: Many other blockchains are competing with Canto for users and developers. The canto needs to show why it's better than the rest.
Possible Security Issues: Since Canto is new, it hasn't been tested as thoroughly as older blockchains. This means there's a higher chance of security problems.
The Road Ahead
Canto has promised a bright future for the model. It is focused on continuous improvement. We can witness some different concepts launched in the blockchain by Canto. Although there is no calculated prediction yet, the potential for growth and improvement within the Canto space is significant.