CELO: A Mobile-First Blockchain Platform
An Open Platform That Allows Easy Access to Financial Dapps
Celo is a blockchain that aims to deliver cryptocurrency directly to your phone through a user-friendly interface. Many people own smartphones, and many of them use apps like Paytm, Cash App and Gpay as digital wallets to transmit money to friends and other users. However, these programmes are run by centralised entities with a lot of control over your account and transaction limits.
The advantage of using these programmes is that they are really simple to use. Paytm, for example, can be rapidly set up without even requiring you to connect it to your bank account before you can use it. Celo, in many ways, is attempting to serve the same market while bringing all of the benefits of bitcoin to the typical smartphone user.
Introduction To Celo
Celo is a smart phone-first blockchain that provides DeFi tools and services to anyone with a smartphone. It intends to break down boundaries by extending the significant benefits of DeFi to the 6 billion cellphones now in use.
Celo uses your phone number as your wallet’s public key to make it simple to send money to the contacts on your phone. There are billions of smartphone users globally, yet just a small percentage of them use cryptocurrency.
Banking and personal finance opportunities are unreliable, in many countries. Celo is a blockchain that contains smart contracts and decentralised applications, giving users access to the potential of decentralised financing (DeFi) and trustless transactions.
For network gas power costs and Celo controlling protocol votes, the platform employs the native coin CELO. Carbon offsetting was one of Celo’s initial proposals that was approved, making its proof-of-stake network the first carbon-neutral blockchains.
How Does CELO Work?
To operate its platform, the Celo network relies on three contributors:
Light Clients — Celo Network applications that operate on users’ mobile devices, such as Celo’s mobile wallet.
Validator Nodes — Computers that take part in Celo’s consensus mechanism, validate transactions, and generate new blocks.
Full Nodes — Computers that serve as a link between Validator nodes and mobile wallets, accepting requests from light clients and transmitting transactions to Validator nodes.
It is worth noting that Celo’s protocol requires validator nodes to be elected by CELO token holders.
Byzantine Fault Tolerance (BFT) :
At the heart of Celo is a Proof of Stake governance mechanism known as Byzantine Fault Tolerance (BFT), which keeps a distributed network of computers in sync.
To power the blockchain and vote on modifications, validator nodes must first stake a minimum of 10,000 CELO tokens, which means that anyone who possesses CELO can assist run the network.
At the moment, there are only 100 validator nodes active at any given time, as determined by the full nodes, and each node is awarded with a piece of the block reward for validating the transactions.
The fees paid out by the light clients are used to reward full nodes.
cUSD & cEUR
Celo’s capacity to operate stablecoins, such as cUSD, cEUR provides the efficiency and transparency of crypto transactions while reducing the volatility of these assets.
Celo uses a programmed reserve, an overcollateralized reserve comprised of CELO and other cryptocurrencies such as Bitcoin (BTC) or Ethereum, to automatically ensure that the value of each cUSD equals one US dollar (ETH) and also the value of each cEUR equals one Euro(ETH). This means that cUSD & cEUR can be sold for the same value as CELO and vice versa.
Celo intends to allow CELO holders to propose and vote on the formation of stablecoins that mimic the value of other national currencies, such as the yen, in the future.
Who build CELO
Celo was founded in 2018 and is headquartered in the San Francisco Bay Area, California, USA. Its three founders are Marek Olszewski, Rene Reinsberg, and Sep Kamvar.
Celo has a team of individuals from MIT, Stanford, Google, Square, Circle, Visa, GoDaddy, the World Bank, the Federal Reserve Bank, Harvard University, the University of Pennsylvania Law School, Cambridge University, the United States Department of Justice, Bank Of America, Capital One, Twitter, Give Directly, and the Gates Foundation.
Celo’s promotion and preservation are the focus of separate entities. The Celo Foundation is a non-profit that launched alongside the mainnet, while the Celo Alliance for Prosperity is a “ecology of mission-aligned organisations,” according to the firm.
Celo assets were created for mobile devices. Celo is frequently seen as the forerunner of the mobile-first movement as a result of this. Its lightweight mobile client and phone verification protocol let users to send, spend, stake, and earn cryptocurrency via their mobile devices.
Solutions for Development
Celo makes it simple to create decentralised apps and assets for cellphones that can move effortlessly between chains, carriers, and nations. Celo’s EVM compatibility makes it easier to create and port dApps. Solidity allows you to code.
Celo is not only compatible with native mobile dApps, but it is also compatible with MetaMask and other well-known Ethereum developer tools. It also enables cross-chain communication from many to many. You have the ability to construct the necessary bridges.
DeFi and Celo dApps
Celo allows you to send cryptocurrency directly to contacts without having to bother about crypto wallet addresses that are typically 42 characters long. Ubeswap and Moola are two Defi solutions built on Celo. While Ubeswap’s mobile-first decentralised exchange intends to democratise access to DeFi, Moola is a Celo-based mobile-first platform for borrowing and lending assets.
CELO is ranked 64th largest cryptocurrency at the moment, is now trading at $3.59 (272 INR), as of April 10 2022. and as market size of more than $1.5 Billion. There are presently 433 million tokens in circulation
CELO has a limited amount of 1 billion tokens, 600 million of which were available when the mainnet opened in April 2020.
The remaining 40% of the supply will be delivered gradually through fees and prizes, with different vesting schedules in place depending on how early investors acquired their tokens.
Furthermore, up to 120 million CELO will be placed in a reserve to ensure the currency’s authenticity and price stability. CUSD, being a stablecoin, is envisioned as a convenient payment method for Celo users who will not have to worry about the value of their holdings shifting.
Putting all Together
The Celo protocol is a mobile-first protocol that addresses impediments to bitcoin adoption while staying as inclusive as possible. Furthermore, the protocol encourages a new sort of monetary ecology that includes local and regional currencies, social dividends, demurrage, and natural-capital-backed currencies.
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