Celo

What is CELO?

Celo is a multi-purpose native token for the platform of the same name. Celo is a mobile decentralized finance (DeFi) ecosystem. which allows users to perform crypto transactions using their phone numbers.

This village Compatible with Ethereum Virtual Machine (EVM). The project aims to improve the usability of cryptocurrency on mobile devices by using blockchain technology to match mobile phone numbers as public keys for cryptocurrency wallets. Celo is also known for issuing stablecoins such as cUSD and cEUR.

Which team is behind Celo?

Village Foundation is a non-profit organization consisting of an international team of researchers. Members represented a wide range of commercial and academic institutions, including the University of Cambridge, the Gates Foundation, Google, MIT, Stanford, Twitter, the US Department of Justice and Visa.

The project came about after it was discovered that the rate at which users are adopting smartphones is significantly higher than the rate of cryptocurrency adoption. Given the widespread adoption of mobile devices around the world, it was decided to simplify the process of purchasing cryptocurrency, trading and other decentralized financial services for the small screen.

Celo is a highly volatile asset. It usually follows the general trends of the market regarding changes in its value. The most current price of CELO can be seen in the chart above.

Work on the Celo crypto project began in 2017, marked by the publication of a technical document. Celo was originally known as cGLD.. However, one of the first proposals put to the blockchain vote was to change the name to Celo.

The decision to change the name was made to avoid confusion, since the price of Celo is not linked to the value of gold. Some sources may still list the asset as cGLD. Before the official launch, the network released two test networks.

Alfajorestesting environment for decentralized application developers was launched in July 2019, and stimulated Baklava test network for node operators was released in December of that year.

The Celo mainnet launched in May 2020. At launch, CELO was priced at approximately $0.8. 60% of the total supply of tokens was available at the time of release, and the remaining 40% is planned to be released gradually.

What are the features of Celo?

Celo coins have a limited maximum supply, which is limited 1000000000. The asset is deflationary, meaning that Celo’s price is expected to rise in the future as reserves become scarcer. 120 million Celo tokens from the total supply are reserved to maintain the stability of the network’s stablecoins.

Celo tokens are not the only assets in the ecosystem. He also offers cUSD and cEUR – stablecoins the cost of which is pegged to 1 US dollar and 1 euro, respectively. Other stablecoins pegged to popular fiat currencies are also in development.

To maintain their fixed value, stablecoins use overfunded reserve, also known as software reserve. In addition to CELO, the reserve also uses other crypto assets, including Bitcoin (BTC) And Ethereum (ETH). The price of Celo does not depend on the price of the tied assets, since it maintains the exchange rate of fiat currency.

If the value of the stablecoin exceeds the peg, the assets are removed from the reserve. On the other hand, if the value falls below the peg, the tokens are sent to the reserve. This will ensure that stablecoins do not fail and will partially regulate the available supply of tokens. cUSD and other stablecoins can be sold at the equivalent CELO price or exchanged for other assets.

Celo uses Proof of Stake (PoS) consensus algorithm. This means that users can stake their assets to provide liquidity to the network, as well as ensure its security and stability. In turn, stakeholders are entitled to rewards as an incentive to continue their contributions to the Celo ecosystem.

Eat three types of network participants to Selo:

• Light clients
• Validator nodes
• Full nodes

Light clients are applications that netizens can access on their phones. Essentially, these are all dApps developed on Celo. Validator nodes are devices that directly participate in the PoS consensus mechanism. They are responsible for producing blocks and validating transactions.

The protocol sets strict guidelines on which devices can act as validator nodes and how many nodes can operate simultaneously. Users wishing to run a validator node must stake at least 10,000 CELO. 100 validator nodes can operate simultaneously. These nodes are elected by full nodes during voting.

Full nodes connect Validator nodes to light clients, in particular Celo mobile wallets. They accept requests from light clients regarding new transactions. The data is then sent to the validator nodes, which write it to the blockchain.

Both the validator and full nodes are rewarded for participating in the network. Validator nodes receive a block reward for registering new transactions, and full nodes receive a transaction fee, which is paid by light clients.

Selo has three main uses:

• Utility
• To book
• Control

As a utility assetCELO is mainly used for smart contract programming and transactions. Celo allows developers to work on mobile-first decentralized applications that simplify transactions and use lightweight clients. Applications developed on Celo can be compatible with both Android and iOS, making them accessible to a wide range of users.

Celo apps allow users to encrypt public keys with access to their cryptocurrencies by matching your mobile phone number with your crypto wallet. One such application is Valora, a peer-to-peer decentralized finance platform. This allows users to perform transactions similar to sending text messages.

Valora requires users to verify their phone numbers, which then act as public keys to access their Celo coins. The platform also supports transactions that use cUSD and cEUR. Valora offers low transaction fees as Celo’s fee price is $0.01.

Assets used in reserve is the aforementioned 120 million CELO dedicated to stablecoins. They ensure that the available supply of Celo is regulated and help maintain the stablecoin peg.

Celo’s on-chain governance functions as decentralized autonomous organization (DAO). Stakeholders have the right to submit proposals for changes to the protocol, and all Celo token holders can vote in the referendum. The value of one stakeholder’s vote depends on the value of his staked assets.

Platform DAO manages Public fund which is supported using 25% of the rewards for mined blocks. The share allocated to the Community Fund may be changed by a vote of management. Celo DAO has complete control over where the funds go.