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Все о криптовалюте Celo - Binaryx

All About Celo Coin

What if money became beautiful? That’s the question that the Celo blockchain platform asks its users. Celo creators plan to achieve mass acceptance of crypto payments by integrating with smartphones, provide access to finance even in countries with low banking sectors and implement other good ideas. How will the team achieve the goals and what role does the CELO token play in the blockchain operation?

What is CELO?

The CELO coin is a native token of the same name platform that is using for several functions:

  • Commission fees;
  • Stablecoin emissions;
  • Voting;
  • Transaction confirmation.

The Celo project is an open-source blockchain protocol for the creation of smart contracts and the development of dApp that will use payment solutions and Celo assets. The main purpose of the project at this stage of its existence is to combine cryptocurrency payments and smartphones so that each owner of the phone can send and receive money in a few taps.

A payment network based on Ethereum blockchain has been launched for this purpose. Celo is compatible with ERC-20 tokens (the CELO token also uses that standard) and allows the execution of contracts on EVM, but is an independent blockchain with its technical features. 

What’s special about this project?

The most important feature of CELO is expressed in the slogan of the project – money can be beautiful. CELO is really beautiful, both technically and ideologically. It is one of the few companies that aims not just to create something, but to have specific objectives: 

  • Make finance available even in regions where banks were not available;
  • Make life easier in small, remote communities;
  • Bring together people all over the world with blockchain technology.

To realize this idea, the Celo Foundation founded “Alliance for Prosperity ” which includes several dozen other technical companies or startups using blockchain technology. Among the members of this alliance:

However, if we put here screenshots of all participants, you would have to scroll for a very long time, so you can learn more about the Alliance by yourself . The team is so motivated, they even make this beautiful video:

To achieve these goals, Celo created a network consisting of three levels:

  • Blockchain – is the basic infrastructure for transaction processing and onchain management.
  • The main smart contracts – are an algorithm for stabilizing the value of an asset, as well as native Stablecoin (now available only in dollars).
  • Applications – now it’s only a crypto wallet, an application for exchange of funds and conversion between Celo and native Stablecoin.

In addition, a set of tools for dApp developers, including Ethereum-based developers, will be added to expand the Celo ecosystem

The whole ecosystem is focused on smartphones, so applications and payment solutions are developed primarily for mobile users. For that goal Celo team created ultralite clients and the special blockchain structure for quick synchronization with limited smartphone power. 

In addition (and this is another Celo tip) the network runs a mobile number confirmation algorithm that connects a subscriber number to a wallet application, turning it into a public key. This means that you can send money through the application to anyone from the contact list (even if your friends don’t have a Celo wallet). Simple, quick and convenient. 

How Celo was started

The world learned about Celo in 2017 – the founder of the project is Rene Rainsberg. In 2019, developers managed to attract $30 million in investment from a few companies, including Andreessen Horowitz and Polychain. The project  developed for a long time, until in May 2020 the workversion of the network was launched with the first stable-coin – CUSD. 

A noncommercial organization – the Celo Foundation, is working to develop and support the network. The Alliance for Prosperity referred to above is charged with the mission of developing and expanding the ecosystem.  As for the team, at the moment in the state of Celo more than 100 people, it would be a bit difficult to list everyone, so look at them there

Tokenomics

The platform economic model is based on two tokens:

  • CELO – is a fixed supply coin with 1,000,000,000 tokens. Token is used for the payment of commissions and gives the right to vote for community proposals. Also its need for emission of the stablecoins. 
  • CUSD is a dollar stablecoin and its instantaneous liquidity is provided by Celo’s internal dollar reserves. 

Users are free to convert CELO to CUSD and back and transfer these tokens to any other user. In order to mint the CUSD, it is necessary to freeze the same amount of CELO tokens on the platform, which means that the CELO price is directly related to the demand for CUSD.

To do the transaction you have to pay “gas” – you can pay this by any of the available tokens on Celo, that is, there is no need to keep a constant reserve CELO.  CUSD is the first but not the only stablecoin of platform. Also euro-coin is due to appear in March, and in the future users will be able to add new assets by voting. The stabilisation algorithm ensures the stability course of the coin by providing a basket of cryptocurrencies and other assets and the Oracles provide market value data.

Mining

The Celo network uses the PoS consensus algorithm and this mains new CELO tokens created by validators during transaction processing. During the launch of the network in May 2020, the developers applied the instamining, releasing 60% (600 million) of the total supply. The other 40% is for the validators. 

Network validators choose holders of CELO tokens using their coins for voting. However, due to the technical features of the algorithm, votes can only be cast for a group of validators, not for personal addresses. Also the Celo network has a three-level node structure:

  • Validators – are responsible for processing transactions and forming blocks. Store a complete copy of blockchain.
  • Full nodes – transfer translation requests to validators and store a partial copy of blockchain. 
  • Clients – are smartphone light applications that do not perform the function of mining or confirming transactions. 

Therefore, not only validators can earn CELO through the mining, but also owners of the full node, who transfer data from the client to the validator for the commission from the initiator of the transaction. 

Where to buy cryptocurrency: available exchanges

The CELO coin is one of the top-ranking positions on the Binaryx future list. In the near future we will provide full trading of CELO in pairs with the main cryptocurrencies, including bitcoin and ether, as well as with fiat currencies available on the site. 

In addition, clients will receive an integrated wallet for storing and managing CELO tokens directly from their account on the site. You will be able to buy CELO to become part of the Celo community and the issue of available stablecoin or as a perspective investment.

Wallets

Full management and conversion between stablecoin and CELO is available through the base wallet – the first dApp in the ecosystem of the network. The wallet is available as a mobile client on the apps-market of the most common smartphone operating systems.

The Valora application is used to make transfers and payments for goods and services through stablecoins in the ecosystem, allowing for the full disposal of CUSD. 

If talking about the usual storage of CELO tokens, all multi-currency purses compatible with the ERC-20 format will be ok. And, of course, you can use the built-in wallet of the Binaryx cryptocurrency exchange after adding a coin to the listing.

Advantages and limitations of the project

Celo is a super-ambitious but still young project that only last year launched the main network. This means that blockchain has not yet been used to its full potential and that all its pros and cons will prove in the future. From now the main strengths of Celo are:

  • Quality adaptation to smartphones;
  • Wide network of partnership projects;
  • Start-up tools for developers;
  • Unique course stabilization algorithm;
  • Native dollar stablecoin. 

The shortcomings of the project include:

  • Limited number of assets available (only one stablecoin);
  • Small annexes;
  • Focus on developing worlds.

Obviously, all these problems are caused by the low age of the project and will be overcome as the Celo network develops and popularizes. However, the traditional problem of scalability for such networks may also arise, especially against the background of a three-level structure involving intermediaries between the initiators of transactions and validators. 

CELO Currency future

The first CELO tokens entered the market on May 22, 2020 with an average exchange price of $0.8 per unit. Two days later, the coin jumped to a value of $1.7 and stayed at that level for a long time, becoming active in mid-to-late summer, apparently due to listing on major trading sites. 

Since January 4, 2021, CELO has been growing steadily, following a market-wide trend and peaked at $5.7. Price trends are follows:

It is clear that the CELO course is influenced both by the general market trend and by the development of the platform. Since CELO is necessary for the issuance of stablecoines, the capitalization of the token may increase with the addition of a euro-coin to the platform and increased demand for a functioning dollar stable. Also Celo needs to be more active at West markets.

With the further development of the project, CELO can be a high potential investment, since the market now needs a real stable stablecoin, and Celo can provide it. 

Conclusion

Celo is a large-scale project with ambitious plans and high-quality solutions for their realization. Blockchain was created as a platform for developing a variety of applications with stable coins tied to real assets. At the moment Celo provides several products:

  • dApp Developer Kit;
  • Native stablecoin CUSD;
  • A blockchain with a PoS algorithm and a price-stabilisation protocol. 

So far, Celo has only one Stablecoin running and a small number of applications, but due to the small age of the site (the mainnet runs less than a year) these problems can be solved in the near future.

As for the CELO token, it is the nucleus of the platform’s economic model and performs several functions – voting, stablecoin minting and validator nodes. The prediction of coin growth depends directly on the development of the project and the market trend.

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