Celo promises to be a stablecoin to rival Libra. While it's unlikely to be viewed with the same suspicion as Facebook's much-maligned digital currency, Celo will still have its share of regulatory and scale-related challenges.
In this article, we will discuss:
What is Celo (CELO) Token?
Celo is a platform that acts as a global payment infrastructure for cryptocurrencies aimed at reaching mobile users.
For this, Celo's goal is that the financial activity is accessible to anyone around the world, thanks to the possibility of sending payments to and from any telephone number in the world.
In addition to basic payments, Celo can support the development of decentralized applications on its blockchain. So far, these dapps include one that allows anyone to contribute to a community's universal basic income scheme, as well as a crowdfunding platform for social causes.
Central to running operations on its blockchain, Celo operates two native tokens: CELO, a governance asset for voting protocol changes, and Celo Dollars (cUSD), a stablecoin that mirrors the value of the US dollar.
Users who want to stay connected with the current development status of the project and the dapps being built on it can follow Celo's official blog for updated details.
CELO token information
- Total Supply: 1.000.000.000
- Max Supply: 1.000.000.000
CELO Price Information
- Maximum value: US$ 9,82 -18.2% Aug 30, 2021 (At the time of publication of this article)
- Minimum value: US$ 0,800156 904.1% May 22, 2020 (more than 1 year)
Encryption for everyone
The Celo platform is participation proof, EVM compliant, open source and governed by CELO asset owners
Celo's Mission
Celo's mission is to build a financial system that creates conditions for prosperity – for everyone.
- Móvel – Start sending, spending and gaining encryption with your mobile phone
- Open – Create dApps and assets that move across networks, carriers and countries
- Real – Use encryption like everyday money on a platform designed for real-world use
Who created the Celo coin?
Celo was co-founded in 2017 by Rene Reinsberg and Marek Olszewski, who were executives at the web hosting company GoDaddy, along with Sep Kamvar and Marek Olszewski, an MIT professor and an executive at Google.
Between 2018 and 2020, Celo raised more than $46,5 million from the sale of approximately 120 million CELO tokens in public and private token sales. Notable investors include venture capital firms a16z Crypto, General Catalyst and Social Capital.
How does Celo Cryptocurrency work?
The Celo network has three collaborators to help operate its platform:
- Light customers – Applications from the Celo Network that run on the user's mobile devices, such as Celo's mobile wallet.
- Validator nodes – Computers that participate in Celo's consensus mechanism, validate transactions and produce new blocks.
- full nodes – Computers that act as a bridge between validator nodes and mobile wallets, receiving requests from lightweight clients and forwarding transactions to validator nodes.
It is noteworthy that the Celo system requires validator nodes to be voted on by CELO token holders.
Byzantine Fault Tolerance (BFT)
Central to Celo is a Proof of Participation governance mechanism called Byzantine Fault Tolerance (BFT), which keeps the distributed network of computers in sync.
In order for validator nodes to trigger the blockchain and vote on changes, they must first wager a minimum of 10.000 CELO tokens, which means that anyone who owns CELO can help operate the network.
Currently, there are only 100 validator nodes at any given time, voted on by all nodes, and each node is subsequently rewarded with a portion of the block's reward for validating transactions.
Full nodes receive their rewards from fees paid by light customers.
cUSD
A key feature of Celo is its ability to trade stablecoins, such as cUSD, which offers efficiency and transparency in cryptographic transactions, while providing relief from the volatility of these assets.
Celo automatically guarantees that the value of each cUSD is equal to one US dollar using what they call a programmatic reserve, an overcollateralized reserve consisting of CELO and other cryptocurrencies such as Bitcoin (BTC) or Ethereum (ETH). This means that cUSD can be sold for an equivalent amount of CELO and vice versa.
In the future, Celo plans to allow CELO holders to propose and vote on the creation of stablecoins that reflect the value of other national currencies, such as the euro or the yen.
What makes CELO a valuable platform?
The CELO cryptocurrency plays a key role in the maintenance and operation of the Celo platform, and can be used for sending, receiving, holding and stakeout.
By owning and betting CELO tokens, users gain the ability to vote on network updates, with each vote being proportional to the amount of CELO cryptocurrency they wager, and participants will receive network rewards for doing so.
Like many other cryptocurrencies, the provision of CELO tokens is limited, meaning that according to the software's rules, there will only be 1 billion CELO.
Why use the CELO Token?
Users may find CELO attractive based on the network's ability to reach more users through ubiquitous technology such as smartphones.
Investors can also look to buy CELO and add it to their portfolio if they believe in the future of payment infrastructures built for mobile phones.
