What is Celo (CELO)?

What is Celo (CELO)?

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Celo is a decentralized blockchain ecosystem that aims to increase bitcoin acceptance among smartphone users. Celo intends to offer bitcoin to the world's billions of smartphone users, even those without banking access, by utilizing contact information as public keys.

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Additionally, the network enables the development of smart contracts and decentralized apps (DApps) as a component of decentralized finance (DeFi). Its mainnet is scheduled to begin in April 2020.

Two native coins are used on the platform. CELO is a proof-of-stake (PoS) coin that is used to pay transaction fees, participate in governance, and other related activities. The Celo network aims to host a vast portfolio of stablecoins in the future, even though there is only one currently in operation, the Celo Dollar (cUSD).

 

Component Celo (CELO)
Technologies  PoS, Byzantine Fault-Tolerance (BFT), Celo Core Contracts, EigenTrust
Market Capitalization $2.0 Billion+
Open-Source Yes
Consensus Mechanism Proof of Stake
Smart Contracts Yes
Founders/Authors A development team consisting of professionals from MIT, Stanford, Google, Circle, VISA, and several other companies
Launch Date April 2020
Circulating Supply of Coins 387,111,233 CELO
Maximum Coin Supply 1,000,000,000 CELO
Mining-based Coin? No
Is Celo a Stablecoin? No
Does Celo have a burn rate? No
Does Celo have a Whitepaper? Yes, Celo's white paper can be viewed here

 

Evolution and Development of Celo

Rene Reinsberg and Marek Olszewski founded the Celo cryptocurrency and blockchain-based project in 2017. Between 2018 and 2020, Celo raised about $46.5 million by selling around 120 million CELO tokens in private as well as public token offerings. Some of the most prominent investors of Celo include venture capital companies such as a16z Crypto, General Catalyst, and Social Capital.

What makes Celo unique?

Celo's primary differentiator is its emphasis on smartphone consumers. According to the business, although the number of mobile phone owners is growing rapidly, the number of cryptocurrency users is growing at a far slower rate.

Additionally, cryptocurrency is well-suited for places where a significant portion of the population lacks access to traditional financial services but has a smartphone.

Celo's mission is to bridge the divide between the two technologies, as well as to maximize the advantages of DeFi by facilitating the production of DApps and smart contracts.

Celo's mobile-optimized blockchain calculates transaction costs automatically and lets users pay the gas fees that fuel transactions in any currency.

Three types of contributors support the Celo network:

  • Celo Network Light Clients — Applications that operate on users' smartphones, such as Celo's mobile wallet.
  • Validator Nodes — Computers that participate in Celo's consensus system, allowing transactions to be validated and new blocks to be created.
  • Full Nodes — Computers that operate as a conduit across Validator nodes and digital wallets, accepting queries from light clients and routing them to validator nodes.

Another thing that must be known about Celo is that CELO token holders are responsible for electing the validator nodes. Celo is built on a Proof of Stake governance called Byzantine Fault Tolerance (BFT) that maintains the distributed computer network in sync.

To power the blockchain and vote on modifications, validator nodes must first stake at least 10,000 CELO tokens, which means that everyone who has CELO may contribute to the network's operation.

To date, there are only 100 validator nodes chosen by the full nodes, and each node is awarded a percentage of the block reward for verifying transactions. The incentives for full nodes come from the fees paid by light customers.

Celo's capacity to run stablecoins, such as cUSD, is an extremely important feature. Stablecoins provide the accountability and efficiency of crypto transactions while mitigating the fluctuations of these assets.

Celo automatically assures that the value of each cUSD is equivalent to one US dollar by using what they refer to as a programmed reserve, which is an overcollateralized reserve comprised of CELO and other cryptocurrencies such as Bitcoin (BTC) or Ethereum (ETH) (ETH). This implies that cUSD may be exchanged for CELO and vice versa.

Celo intends to enable CELO holders to suggest and vote on the formation of stablecoins that mimic the worth of other national currencies such as the euro or yen in the future.

What are the main uses for Celo?

CELO holders can spend their coins to pay network processing fees, often referred to as gas payments or gas fees. Celo specifies a minimum gas price for all transactions or contract fulfillment. The market for determining this gas price follows the rationale outlined in EIP-1559, an Ethereum enhancement proposal aimed at improving the market for gas fees.

A portion of this gas cost, dubbed the base, will be sent to Celo's on-chain Community Pay, which helps fund the platform's general maintenance. The validator who proposes the block is compensated for any fees more than the standard charge, referred to as the tip.

What is the future potential for Celo?

Today, almost 2 billion people do not have access to banking services, most people have never heard of cryptocurrency wallets, yet everyone has a smartphone. Celo targets mobile phone customers by letting them utilize their mobile number as the public key, rather than the longer string addresses used in the past. 

The non-profit organization GiveDirectly is piloting a program on Celo to give unrestricted cash transfers to West Africa's extremely poor.

GiveDirectly will distribute low-cost Android phones to people in specific West African areas. Beneficiaries will receive unconditional grants in Celo Dollars through these devices and the Celo Protocol, which they may use to save, convey value to friends, and spend at participating businesses.

While this is just a pilot experiment, it demonstrates the technology's potential. The impediments to entry into the historical financial system — the need for government-issued identification, the presence of physical bank branches, and so forth — may be eliminated with the use of a basic mobile phone. 

Participants may access the same financial services that the rest of the world takes for granted — loans, insurance, savings, and investment vehicles — by developing apps on these open-source platforms.

Price analysis on Celo

Celo was initially launched in 2022, and its price analysis over the past five months are as follows:

 

  2020 September October November December to date
CELO Price High $4.46 $7.63 $7.25 $6.63 $4.92
CELO Price Low $1.36 $4.12 $5.56 $4.68 $3.43
Market Cap $555M $2.05B $2.37B $2.30B $2.01B

 

Price prediction on Celo 

The CELO coin's price increased on 30 August in reaction to reports of the DeFi collaboration, indicating that space-related initiatives continue to gain interest.

The price increased from $4.27 on 29 August to an intraday high of $10.66 on 30 August, an all-time high. It then fell to a low of $3.83 on 7 September but quickly recovered.

The price climbed from $6.56 on 22 September to $7.62 on 23 September on the announcement of the Mysten Labs agreement. On 23 September, the coin reached a low of $7.19. By 8 December, the price had fallen to $3.53. The Celo network is increasingly being used to connect ERC-20 tokens. 

Celo's overall value has increased dramatically, from $167.2 million at the end of 2020 to $556.5 million on 30 August, $798.0 million on 1 September, $1.05 billion on 8 November, and $566 million on 8 December, as per technical analysis data.

Analysts expected that the CELO coin price would exceed $5 by the start of 2022. By the end of 2022, the average price is predicted to reach $6.43 before climbing to $8.997 by the end of 2023. By the end of 2025, algorithm-based forecasting sites predict the price will reach $14.23.

What is Celo’s largest Competitor?

Terra is the largest competitor of Celo.

The Celo stablecoin method uses computational and overcollateralized on-chain and cross-chain resources. For example, the Celo protocol operates as a market maker for its algorithmic stablecoin. To preserve its anchor rate, cUSD is exchanged on markets like Uniswap.

Celo Treasury is also meant to always remain overcollateralized. If Celo's assets fall below its obligations, the platform will revalue the ecosystem by charging Celo transfer fees.

Like Terra, Celo produces the public chain as well as the stablecoin protocol. It proposes and incubates DeFi initiatives to offer funding for its native stablecoin, enabling project launch and network development.

Celo and Terra both approach and position themselves similarly:

  • Both initiatives are decentralized stablecoin projects, not a pan-public chain like Ethereum.
  • Both protocols are now a whole financial ecosystem, not simply a decentralized stablecoin protocol.
  • Both utilize DeFi to create business plans for stable currencies and fundraise for the ecosystem.

What is the Staking Process involved with Celo?

Celo selects the verifier set for an epoch using a Proof-of-Stake method. Participants in validator elections and governance initiatives can earn rewards when they stake and lock up their CELO coins. Initial validators will be limited to 100 nodes chosen by CELO holders. 

For their efforts, validators are compensated with Celo Dollars (cUSD). Celo provides a mechanism to encourage frequent node operation. Light clients pay full node transaction costs. Clients enter the address of a node that will receive the fee after the transaction is completed. 

While a full node offers additional services at free charge, it is expected that failing to serve these requests would encourage clients to seek out other full nodes that do, resulting in costs.

Since light clients may validate their own work, they can obtain CELO or Celo Dollars (cUSD) without having to trust complete nodes, which is lacking in other Proof-of-Stake networks.

What can Celo smart contracts do?

To monitor and improve the protocol's core contracts and parameters, Celo employs an on-chain governance mechanism. Modifying smart contracts, introducing additional stable currencies, adjusting the reserve goal asset allocation, and changing validator election rules are all examples.

All Celo Core Contracts are “owned” by the Governance contract. This allows the protocol to perform the code according to the context of the Governance contract. Proposals are chosen for review and voting by CELO holders who use the same weighted vote used to elect validators.

 Celo accepts stable cryptocurrencies as transaction fees, and users who transfer Celo Dollars can pay their transaction fee from their Celo Dollar (cUSD) balance, eliminating the requirement for a separate CELO balance. 

The protocol keeps track of accepted currencies for transaction costs. These smart contracts extend the ERC-20 interface to debit card and credit card transaction fees.

The Escrow contract enables users to pay other users who have a phone number but no account. The intended receiver can withdraw the funds after opening an account and verifying their identity or for the sender to claim them.

End-to-end encrypted comments are supported between accounts with linked IDs. During the transfer, a remark encoded to the identity's public key is added in an event on the blockchain ledger.

Is Celo a Good Investment?

Yes, Celo is a good investment.

One of the largest factors drawing attention to the project is that exchanging Celo Coins is significantly cheaper than sending money through bank transfer. 

One of the largest factors drawing attention to the project is that exchanging Celo Coins is significantly cheaper than sending money through bank transfer. Bank transfers, particularly international ones, may have high costs. They might sometimes take a few days to process. Using Celo to transfer money to friends and family bypasses the intermediaries.

There are some transfer costs, although they are cheaper than typical payment methods. Moreover, your payment will be processed within minutes.

 Celo protects users and their money from fraud with its secured blockchain architecture and elected verification for new users. Because new cryptocurrency users are typically concerned about hacking, Celo's multi-step security mechanisms help calm and reassure them.

In the future, retailers may utilize Celo to charge for products and services both online and offline. Sending or receiving cryptocurrency does not have to be dangerous with Celo's fraud prevention methods.

Currently, trading cryptocurrencies with friends and family is sluggish, difficult, and costly. Sending Celo Dollars or Celo Euros is simple, stress-free, and quick. The simplicity of Celo may appeal to those who dislike the intricacy of the most popular cryptocurrency.

What is the supply and distribution of Celo?

CELO and CUSD are mutually exclusive components of the Celo platform. CELO has a limited number of one billion (1,000,000,000) tokens, of which 600 million were accessible at the time of the mainnet's April 2020 debut.

The remaining 40% of the supply will be delivered gradually via fees and prizes, and multiple vesting dates have been established based on how original investors acquired their tokens.

Additionally, up to 120 million CELO will be placed in a reserve to ensure the currency's legality and price stability. CUSD is envisioned as an easy payment mechanism for Celo users who will no longer need to worry about their holdings shifting in value.

Is Celo a viable Alternative Coin?

Yes, Celo is a good alternative coin.

  • Traceability – While all transactions are recorded on a public ledger, the user’s identity is not disclosed and cannot be exploited.
  • Hacking – The Celo ecosystem has not experienced a successful hacking attempt
  • Security – The Celo blockchain is extremely secure.
  • Transaction speed – The ecosystem is extremely fast and ensures for fast execution of transactions.
  • Technology – The platform has robust technology, including PoS, Byzantine Fault-Tolerance (BFT), Celo Core Contracts, EigenTrust, and more.
  • Potential Investment – Because of the goals that Celo tries to achieve by bringing financial services to those who do not have any access to banking, Celo is a great investment option with a lot of room to grow.

Any cryptocurrency that isn't Bitcoin is referred to as an altcoin.

What are the differences between Celo and Bitcoin?

As a mobile-focused blockchain ecosystem, Celo aims to increase the usage of cryptocurrencies among smartphone users.

Celo wants to make bitcoin transactions accessible to the billions of people across the globe who hold smartphones, even those without bank accounts, by utilizing phone numbers as public keys.

Bitcoin is still the largest cryptocurrency in the world, but there are other projects like Celo competing to become the next best digital currency, especially where using crypto instead of conventional fiat currencies is concerned.

While Bitcoin aims to be the overall digital currency, Celo focuses on providing the unbanked nations of the world the means to transfer value, and several partnerships could increase Celo’s popularity and adoption.

 

  Bitcoin Celo
Price change 20/21 +400% +270%
Market Cap $800 Billion+ $2.0 Billion+
Past Hacks None None
Popularity Very High Low
Altcoin Rank #1 – Original Crypto #69

 

What are the differences between Celo and Ethereum?

One of the key differences between Ethereum and Celo is that transaction fees can be paid in a variety of crypto assets in addition to the native asset in Celo. Ethereum's transaction fees must be paid in ETH.

BFT Proof-of-Stake is the consensus mechanism used by the Celo protocol. A block on Celo can be constructed in 5 seconds, but on Ethereum, it could take up to 15 seconds. To guarantee that a transaction cannot be reversed, all blocks are finished instantly. Therefore there is no need for more than one block confirmation.

 

  Ethereum Celo
Price change 20/21 +880% +270%
Market Cap $460 Billion+ $2.0 Billion+
Past Hacks None None
Popularity Very High Low
Altcoin Rank #2 #69

 

What are the differences between Celo and NEO?

It is safe to say that Celo will continue to outperform Neo in the utility department for a long time to come. Celo also has a higher user adoption rate.

Sending CELO coins is a thousand times more costly than sending NEO currencies. Celo transactions, on the other hand, take around 20 times less time to process. 

In contrast to Neo, Celo does not have independent wallets, which means that it is entirely reliant on the developer team for upgrades and security. Since most currencies will be supported by independent wallets soon, this may alter. Several online merchants now accept CELO and NEO.

Because of this, the accessible quantity of CELO coins from Celo is around three times lower than that from Neo. Celo's inflation rate is comparable to or lower than Neo's. Both Celo and Neo may be staked, which provides a rate of return of 13% for CELO and 3% for NEO.

 

  NEO Celo
Price change 20/21 +160% +270%
Market Cap $1.70 Billion+ $2.0 Billion+
Past Hacks None None
Popularity Low Low
Altcoin Rank #72 #69

 

What are the differences between Celo and NFTs?

Nonfungible tokens (NFTs) are digital assets that each have a unique value, with no two NFTs holding the same characteristics or value as another. Celo, on the other hand, is fungible, which means that one CELO has the same value and characteristics as another CELO.

 

What are the differences between Celo and Solana?

Solana is a programmable blockchain that has a long-term advantage over Celo in terms of utility, and this is set to increase as Solana becomes increasingly popular among DApp and Smart contract developers. Compared to SOL coins, CELO coins are twice as costly to transfer. Because Solana can handle up to 50,000 transactions per second, Celo transaction speeds are eight times slower.

 

  Solana Celo
Price change 20/21 +9,300% +270%
Market Cap $54 Billion+ $2.0 Billion+
Past Hacks None None
Popularity Very High Low
Altcoin Rank #5 #69

 

What is Sacred Economics?

Sacred Economics is a book that is authored by Charles Eisenstein.

It shows how the money system has led to alienation, competitiveness, and scarcity, undermined society, and forced unending expansion. The end of these tendencies may open new opportunities for more interconnected, ecological, and sustainable living.

The main theme of this book revolves around the money system, and societies and the world can change together. Sacred Economics tackles innovative New Economics principles, including:

  • Negative-interest currencies
  • Local currencies
  • Gift economics
  • The restoration of the commons.

What are the compatible wallets for Celo?

WALLETS can be described as tools for creating and managing accounts on the Celo platform.

Wallets control the private account keys of users, which is why wallets must be chosen carefully. Users are urged to only use trusted wallets that are transparent and well-maintained by legit providers. The best wallets for CELO are:

  1. Valora
  2. CelloWallet.app
  3. Celo Terminal
  4. CeloExtensionWallet
  5. Steakwallet

 

1. Valora: Valora is a mobile wallet that aims to make global peer-to-peer payments easy and accessible to everyone. It is compatible with the Celo Identity Protocol, which enables users to authenticate their phone numbers and send money to their connections.

 

2. CeloWallet.app: CeloWallet.app is a lightweight smartphone crypto wallet that can be used on both the web and the desktop. It provides support for fundamental Celo features, including payments, exchanges, staking, and network governance.

The application has support for Ledger Nano, and it can be used on desktop PCs. The wallet is maintained by J M Rossy, and it is a trusted wallet for CELO tokens.

 

3. Celo Terminal: Celo Terminal is a digital wallet as well as a DApp platform. It intends to serve as a central location for installing and maintaining Celo DApps on the desktop. The wallet is maintained by WOTrust and offers Ledger Nano support.

 

4. CeloExtensionWallet: Celo Extension Wallet is a variant of Metamask designed specifically for use on the Celo Network. It is a Chrome browser addon that fulfills its promises, maintained by DSRV Labs, offering Ledger support.

 

5. Steakwallet: Steakwallet is a non-custodial crypto wallet that supports several chains of staking. It aspires to be the central point for mobile DeFi, and it has been supporting Celo from the beginning.

Best Bitcoin Wallets are the same as Celo wallets.

Which platforms can be used to buy Celo?

The cryptocurrency exchange trading platforms that list Celo include:

  1. FTX Exchange
  2. Bitget
  3. OKEx
  4. Upbit
  5. Binance

 

1. FTX Exchange: If you are a newbie to cryptocurrency trading or an experienced trader, FTX is a fantastic option as a cryptocurrency exchange. In terms of developing a platform for sophisticated trading, they have done an excellent job, with a wide range of investment markets available, including futures, foreign exchange, volatility products, and leveraged tokens.

 

2. Bitget: Bitget is a cryptocurrency exchange that was founded in 2018 and is based in Singapore. Although it provides customers with both futures and spot trading, the primary concentration is on derivatives trading.

 

3. OKEx: OKEx is one of the world's most trusted cryptocurrency exchange applications for purchasing Bitcoin (BTC), Ethereum (ETH), USDT, Ripple (XRP), and a variety of other digital assets. The exchange provides safe and dependable digital asset management services, and it presently supports over 400 crypto trading pairs for both spot and contract trading.

 

4. Upbit: Established in October 2017, Upbit is a Korean crypto exchange trading platform that offers a choice in crypto trading pairs, an innovative mobile trading app, and large 24-hour trading volumes. Since 2020, Upbit has shown unprecedented growth and an influx in customers, giving it a high level of trustworthiness among investors.

 

5. Binance: Binance is a cryptocurrency exchange that provides a safe and adaptable alternative to invest in and trade cryptocurrencies. Binance may be daunting for both new and seasoned traders, but the exchange offers educational resources and guides. Binance is a cryptocurrency exchange that is completely free to use and has lower costs than many other cryptocurrency exchanges.

You can buy CELO safely from these cryptocurrency platforms.