Celo coin (CELO) is a platform that aims to provide mobile users with a global cryptocurrency payment infrastructure. To this end, Celo (CELO) aims to make global financial activities accessible to everyone by enabling payments to and from any phone number in the world. Celo (CELO) is a blockchain ecosystem designed to increase the adoption of cryptocurrencies among smartphone users.
In addition to basic payments, Celo (CELO) can facilitate the development of blockchain-based decentralized applications. These applications include a social purpose funding platform and a platform that allows anyone to contribute to a community plan for a universal basic income.
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What are Celo Tokens?
Celo (CELO) has two native tokens that are needed to operate on the blockchain, the first of which is a token: CELO, a governance asset for voting on protocol updates, and Celo Dollar (cUSD), a stablecoin equivalent to the value of the US dollar.
There are two native coins for the platform: CELO is a proof-of-stake (PoS) coin used for transaction fees, governance participation and other related activities. Celo Dollar (CUSD) is already in use and the network promises to include other stablecoins in the future.
Celo (CELO) aims to enable billions of smartphone owners around the world, including the unbanked, to conduct cryptocurrency transactions using their phone number as a public key.
As part of decentralized finance, the network also enables the creation of smart contracts and decentralized applications (DApps) (DeFi). The primary network went live in April 2020.
How Celo Coin (CELO) Works
The Celo network (CELO) consists of three different components to run its platform:
Celo’s Lightweight Clients: mobile network applications such as Celo’s (CELO) mobile wallet running on the user’s mobile device.
Validator nodes: Computers that verify transactions and generate new blocks as part of Celo’s (CELO) consensus mechanism.
Full nodes: Computers that act as a bridge between validator nodes and mobile wallets by receiving requests from lightweight clients and forwarding them to validator nodes.
The Celo system (CELO) requires CELO token holders to vote for validator nodes.
Who Crafted Celo (CELO)?
A team from MIT, Stanford, Google, Square, Circle, Visa, GoDaddy, the World Bank, the Federal Reserve Bank, Harvard University, the University of Pennsylvania Law School, Cambridge, the US Department of Justice, Bank of America, Capital One, Twitter, Give Direct, and the Gates Foundation created the Celo (CELO) Project.
Why is the Celo System so Fundamentally Different?
Celo’s (CELO) main selling point is its focus on smartphone customers. According to the company, while the number of smartphone owners is growing exponentially, the number of cryptocurrency users is growing much more slowly.
Where a large part of the population does not have access to the banking sector, but still owns a smartphone, cryptocurrency is the best solution.
Celo’s (CELO) main goal is to bridge the gap between these devices and cryptocurrency technologies by leveraging DeFi by supporting the creation of DApps and smart contracts.
The Celo blockchain is optimized for mobile devices, automatically calculates transaction costs and allows users to pay “gas” fees for transactions in any currency.
How Secure is the Celo Coin Network?
Celo (CELO) uses a complex selection process to determine the blockchain’s proof-of-stake and validators for security. CELO holders can participate in elections by voting with their assets for groups of validators.
Byzantine Fault Tolerance (BFT).
At the heart of Celo (CELO) is the Byzantine Fault Tolerance (BFT) proof-of-stake management mechanism that synchronizes the distributed network of computers.
In order for validator nodes to strengthen the blockchain and vote on changes, they must first deposit at least 10,000 CELO tokens, which means that anyone who owns CELO can contribute to the maintenance of the network.
In the current period, there are only 100 Validator Nodes selected by Full Nodes, and each node receives a percentage of the block reward for validating transactions. Full nodes are compensated by fees paid by light clients.
cUSD: The stable coin
An important feature of Celo (CELO) is its ability to run stablecoins such as cUSD, which ensures the efficiency and transparency of crypto transactions while reducing the volatility of these assets.
Celo (CELO) uses what is known as a programmed reserve, an overcollateralized reserve made up of cELO and other cryptocurrencies such as Bitcoin (BTC) or Ethereum, to ensure that the value of each cUSD is equivalent to one US dollar (ETH). This means that cUSD can be exchanged for the same amount of CELO and vice versa.
Celo aims to allow CELO holders to propose and vote on the creation of stablecoins in the future that represent the value of other national currencies such as the Euro or the Yen.
How Much CELO Coin and CUSD Are in Circulation?
CELO and CUSD serve overlapping purposes on the Celo platform. CELO has a total amount of 1 billion (1,000,000,000,000,000) tokens, of which 600 million will be available at the launch of the mainnet in April 2020.
The remaining 40% of the offering will be gradually released through fees and rewards, with various vesting plans depending on how early investors receive their tokens.
In addition, 120 million CELO will be used to fund a reserve designed to maintain the value and price stability of the currency. As a stable coin, CUSD is intended to be a convenient payment option for Celo (CELO) users who do not need to worry about price fluctuations.
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