Celo is the most popular blockchain in the crypto world. The main goal of Celo is to offer a user-friendly experience for mobile investors. People often use mobile phones rather than desktops. They use Venmo, Cash App and other applications to send or receive money. But these apps are powered by centralized companies, they might have complete power over their user’s account, personal information, transaction limitation and more.
Celo comes into the picture!
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What is Celo (CELO)?
Celo (CELO) acts as a worldwide payment infrastructure, specially designed for crypto payments. As mentioned above, celo aims to make mobile users happy.
The ultimate goal of celo is for business, financial and other payment activities to be easily accessible to people around the world. Million thanks to Celo, people can be able to send or receive money from any mobile number on the globe.
Apart from the basic payment features, it also supports DApps (decentralized applications) on Celo (CELO) blockchain. Hence, the decentralized applications developed on the Celo (CELO) blockchain enable people to donate to crowdfunding websites for various social causes.
Celo operates 2 native digital currencies
- CELO
- Celo Dollars (cUSD)
Who invented Celo (CELO)?
Celo (CELO) was founded by “Rene Reinsberg and Marek Olszewski” in 2017. Rene and Marek worked together in GoDaddy hosting company as executives. From 2018 to 2020, Celo (CELO) has raised $46.5 million just by selling over $120 million CELO cryptocurrencies. CELO coins are sold in private as well as public cryptocurrency sales.
What makes Celo (CELO) unique?
The key unique selling point of Celo’s commonly lies in its target on mobile phone users. CELO has claimed that mobile users are increasing exponentially around the world, but the number of users using digital tokens is rising at a low pace.
Cryptocurrency is suitable for the people who don’t have access to central governance for banks but still hold a mobile phone. Celo is bridging the gap in-between cryptocurrency and mobile phone technology. On the other hand, CELO is offering amazing benefits for its users by helping them develop decentralized applications, smart contracts and more.
Celo is well-optimized for smartphones. It means, the CELO blockchain will calculate transaction charges automatically. Also, allows investors to pay their gas charges, it has the power payments in local and national currency.
How many Celo (CELO) coins are there in circulation?
The cryptocurrencies CELO, as well as cUSD, performs integral functions within its platform. The maximum supply of Celo tokens is 1 billion, of which over 600 million Celo tokens were available during the Mainet launch (Apr 2020).
The last 40% of Celo supply will be gradually released through fees, rewards and more. In addition, upto 12 million Celo tokens will be allocated for maintaining the validity as well as cUSD price stability. cUSD is the popular stablecoin and easy payment mode for all Celo investors. They don’t need to bother about value fluctuation in the future.
While writing, the price of Celo is $6.35 USD with a trading volume of $55,821,826 USD. The price value may vary from time to time. The market capitalization of Celo is $2,205,249,773 USD with a circulating supply of 347,297,758 tokens.
How does Celo (CELO) work?
Now, let’s have a look at the CELO working model. The Celo (CELO) network mostly depends on 3 contributors to run their program.
- Light clients: Celo (CELO) network apps running on the user mobile phone like “Celo’s smartphone wallet”.
- Validator nodes: The computer or desktop that take part in the Celo’s consensus approach, validate every transaction and then generate new blocks accordingly.
- Full nodes: Full nodes are the computers that serve as the link or bridge between the validator and mobile wallet. Simply put, full nodes will accept the request from the light client and later forward the transactions to the validator node.
Keep a note, Celo (CELO) system needs the validator node to be voted in by the Celo(CELO) digital currency holders.
Byzantine Fault Tolerance
“Central to Celo (CELO)” is the proof-of-stake governance mechanism popularly called “Byzantine Fault Tolerance (BFT)”. Simply put, BFT helps to keep the distributed network of the computer in a synchronized format.
As mentioned above, validator nodes will generate power to the blockchain and accordingly vote on the currency changes. In order to implement such a mechanism, validator nodes need to stake at least 10,000 CELO coins. It means users who hold Celo (CELO) tokens can help while operating the network.
As per analysis, there are 1 hundred validator nodes on the network, voted on by full nodes. Every node will be rewarded with the small amount of the block bonus or reward whenever they successfully validate the transaction. The full node will earn rewards from the payments given by light clients.
Celo Dollar (cUSD)
Another attractive feature of Celo (CELO) is the ability to handle stablecoins i.e cUSD. CELO offers efficiency and also transparency of cryptocurrency payments.
The platform CELO will automatically ensure that the price value of 1 cUSD is equal to the 1 US dollar. Keeping it simple, you can sell cUSD for an equal price value of Celo (CELO). On the other hand, the value of Celo is equal to cUSD.
According to research, CELO is planning to enable Celo user’s to propose as well as vote on the creation of stable cryptocurrencies that mirrors the value of popular and local currencies like the Euro, Yen and more.
Conclusion
Celo (CELO) is the blockchain ecosystem that mainly targets increasing digital currency adoption among mobile device investors. By using mobile numbers as the public key, the platform has introduced billions of mobile phone users to transact in crypto. People who don’t have banking access are now able to transfer their funds easily with Celo. Celo network enables users for developing DApps and smart contracts. CELO has 2 native coins, Celo and cUSD (Celo Dollar). As cUSD is a stable coin, you don’t need to bother about price fluctuation in the future as well. If you’re the one who doesn’t have access to a bank, investing in Celo could be the best thing for you.
