Using mobile phone numbers as addresses also allowed the team to develop a blockchain with far lower resource usage when compared with many modern blockchain solutions. This low resource design is key for increasing usage in areas where resources are scarce. To understand the value of Celo and its ecosystem of services, we need to look first at how cgld coin it’s designed to be used. CELO is a mobile-first blockchain designed to unlock the power of crypto for absolutely everyone, without any additional hardware. The traditional financial system is known for its gatekeepers and restrictions, limiting our access to our assets and preventing many people from accessing basic financial services altogether.
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- The team at Celo made the decision to use the mobile phone because it is so ubiquitous and understood.
- One of the blockchain projects that’s been working on making cryptocurrencies available to everyone by simplifying the payment process is Celo.
Rather than using complex, long strings of letters and numbers as blockchain addresses, users of Celo are able to send and receive cryptocurrencies using their mobile phone number. To make use of mobile phones the Celo protocol was created to be lightweight and fast. And with over 6 billion mobile devices globally it was also made to be scalable. And with the Celo infrastructure operating across many different carriers and countries, it enables access to financial services from almost any mobile phone in the world. Celo also removes the barrier of complexity for new users, by enabling you to use your phone number as your public key.
This leading decentralized finance platform is currently being used for an intriguing initiative. Today, it was announced that mobile-focused blockchain Celo is launching a $100 million “DeFi for the People” fund. This fund aims to bring DeFi and dApps to the 6 billion smartphone users globally.
Celo uses an on-chain public key infrastructure that links phone numbers to public keys, making it easy to send money to your phone’s contacts, whether or not they have a crypto wallet yet. There is no lengthy “onboarding” for new users – all you need is a phone and some crypto. Celo is a proof-of-stake (PoS) layer 1 blockchain network complete with a virtual machine that facilitates smart contract and decentralized application (dApp) development and deployment. The Celo ecosystem can be used to issue stablecoins, such as cUSD, via an algorithmic stablecoin collateralization model. In addition, the amount of value passed through mobile phones is growing each year, even without digital assets being accounted for. Complete cryptocurrency market coverage with live coin prices, charts and crypto market cap featuring coins on 750 exchanges.
cGLD Breakdown
Celo’s core function is to facilitate the seamless transfer of funds between parties using just a mobile phone number, and therefore, uses mobile phone numbers as the public key for Celo wallet addresses. The Celo team simplified the user experience by getting rid of the clunky public keys on the user side and replaced them with the mobile phone numbers that most of us are used to. They are also far easier to remember and to type into a form as an address.
The team at Celo made the decision to use the mobile phone because it is so ubiquitous and understood. While some areas of the world haven’t received the cabling for internet or even for landline phones in 2020, the people that live in these areas do have mobile phones in many cases. Celo also offers the Celo Dollar – the platform’s native stablecoin backed by CGLD in reserve, and capable of maintaining a stable value via Celo’s algorithmic https://cryptolisting.org/ protocol. Celo’s native token Celo (CGLD) is also an on-chain governance token that can be staked on Celo’s proof-of-stake protocol, making passive income accessible to anyone. This also means anyone with the token can have a say in how the platform evolves and grows over time. Blockchains are known for their relatively slow transaction speeds, as they struggle to download transaction history data before exchanging funds.
A regenerative path towards prosperity
In addition to being compensated they also hold governance properties that steer the network and protocol in the best direction as deemed by the community. There are many other successful blockchain projects using PoS consensus and these include Cosmos, Tezos, and Algorand. And in the near future Ethereum will also transition to become a Proof-of-Stake blockchain.
The Alliance for Prosperity
As 2021 is beginning most of the trading volume in the token is on Coinbase Pro. In addition there is a small amount of trading on Bilaxy and on Bittrex. Users can create cUSD by sending $1 worth of CELO/cGLD to the Celo Foundation reserve. Similarly, if the price of cUSD is under $1 arbitrageurs will buy the token and then exchange it for CELO to profit from the difference. Marek Olszewski is an avid computer engineer, with a PhD in Computer Science from Massachusetts Institute of Technology.
So, when the price of cUSD is above $1 arbitrageurs are expected to purchase CELO and exchange it for cUSD, then sell the cUSD to collect the profit. For those who can’t or won’t run a validator there is an option to stake coins by delegating to the validators. Unfortunately it is still a fairly complex operation even to delegate since it needs to be done through a command line interface. They are responsible for protocol changes, providing security audits, and supplying the hardware and software necessary to keep the network running. One downside to the validator network is the cost of running a validator node, currently estimated to be over $15,000.
And by using the mobile phone in its design it has found one way to make cryptocurrencies more approachable and understandable for the average person. This could be just the thing to drive massive adoption in the coming decade. The Celo Foundation is continuing this transition by creating the Alliance for Prosperity. Not just that, but the amount of value now being passed using mobile devices is growing every year. In 2018 alone there were an estimated $136 billion in cash transactions conducted via mobile money agents. It’s a telling statistic that’s backed up by the fact that the number of mobile money agents exceeds that of the commercial banking infrastructure.
possible with Celo
Still, that’s quite inexpensive when compared with Cosmos for example, where it requires 10,000 ATOM (over $50,000) to become a validator. Given the publicity this news has brought, perhaps today’s move in CELO isn’t surprising. However, those interested in what Celo and the cGLD crypto are may be intrigued to learn more. Let’s dive into a few things investors may want to know about this crypto platform. This type of adoption is going to be necessary to see growth in the CELO token, which has been sadly resistant to the December rally in Bitcoin and other large cryptocurrencies. The protocol that provides the cUSD with stability is a hybrid seigniorage and crypto-collateral model.
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On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Please include what you were doing when this page came up and the Cloudflare Ray ID found at the bottom of this page. For storage Celo has released a wallet, however it is currently only available for Android devices. There is also a third-party Chrome extension, however it has no reviews and very few users, so install it at your own risk.
For example, even though many of these areas have never had fixed line telephones, or dial-up internet, they are now saturated by cell phones and other mobile devices. The overriding objective of Celo is driven by the mission and goals of the Alliance of Prosperity. Celo doesn’t just want to be the first mobile-friendly, highly-secured blockchain network. It wants to accomplish this in order to expand on its mission to improve financial inclusion and prosperity for citizens in all parts of the world who traditionally have been excluded from the financial system. The Celo Dollars or cUSD are the Celo stablecoin that is meant to enable stable transfer of value between users. It is backed by reserves of other digital assets like Bitcoin and Ethereum and is pegged to the price of the U.S. dollar.