Celo Coin: Making DeFi Accessible on Smartphones for All
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Celo Foundation (CELO) represents a significant initiative in the burgeoning DeFi sector. The project aims to bring decentralized finance closer to mobile users.
"Our goal is to create a financial system that enables prosperity for all." — celo.org
To contribute to the "Internet of Values," Celo seeks to decentralize payment systems. Utilizing a proof-of-stake mechanism, its application allows users to conduct cryptocurrency transactions via their mobile devices. This app is compatible with any standard smartphone and includes a built-in wallet.
> The Internet of Value is a concept introduced by Ripple, envisioning a future where value is transferred and exchanged as seamlessly as information on the Internet today. In this paradigm, transactions, such as foreign currency exchanges, could occur instantly, similar to the way people share messages, images, and videos online. This concept extends beyond money. — hackernoon.com
Overview of Celo
Celo is a blockchain ecosystem aimed at integrating cryptocurrencies with mobile technology. The mainnet was launched in April 2020.
The vision behind Celo is to ensure that every smartphone user has access to financial services, enabling them to send money to anyone and make payments via a decentralized platform. The network supports smart contracts and decentralized applications (dApps).
According to the developers, CELO has been built from the ground up, including the blockchain software, core libraries, and user-facing applications/wallets.
"We envision a world where creators and innovators transform local economies." "We aim for local economic growth to rejuvenate global ecosystems." "We develop products that foster prosperity — for everyone." "We are Celo." — celo.org
Celo specifically focuses on reaching non-digital natives who have basic smartphones and limited internet access, primarily in developing countries. The developers utilize a comprehensive approach with a design centered around user needs. For instance, CELO employs phone numbers as public keys, reducing entry barriers.
Additionally, the platform features two native tokens: CELO, a proof-of-stake (PoS) token used for transaction fees and governance, and the Celo Dollar (CUSD), the platform's stablecoin.
Advantages and Opportunities
Rapid Synchronization
As per the developers, Celo provides exceptionally quick and secure synchronization. Users can sync the blockchain almost instantly and check its status. This allows even those with high latency, low bandwidth, or costly data plans to utilize Celo. In contrast, Ethereum users must retrieve every block header to verify data from untrusted nodes, ensuring the creation of a cryptographically secure chain. Celo employs a different consensus mechanism.
Mobile-Centric Approach
Celo’s standout feature is its focus on smartphone users. The CELO team notes that while smartphone ownership is surging, the growth of cryptocurrency users is lagging behind.
Celo aims to bridge the gap between smartphones and cryptocurrencies through lightweight applications and smart contracts. The CELO blockchain is optimized for mobile usage, allowing users to pay transaction fees in various currencies.
Money Transfers
The Celo ecosystem also includes stablecoins that represent various assets, including fiat currencies, commodities, or natural resources. The supported stablecoins, such as the Celo Dollar (cUSD) and Celo Euro (cEUR), are pegged to the values of the U.S. dollar and the euro, respectively. These stablecoins are collateralized by CELO and a basket of other assets, including BTC and ETH, enabling users to redeem stablecoins for CELO.
Quick Facts: What Sets Celo Apart?
- EVM Compatibility: Celo works with the Ethereum Virtual Machine.
- On-Chain Governance: It facilitates quick upgrades and protocol changes through a governance model that allows all cryptocurrency holders to participate.
- Proof-of-Stake: Celo implements a proof-of-stake consensus method.
- Incentive System: Unlike other proof-of-stake networks, Celo rewards users for providing computing resources without needing them to stake coins.
- Instant Synchronization: Fast and secure syncing with the Celo network allows even users on slow connections to participate.
- Transaction Fees: Users can pay transaction fees using stable currencies.
- Low Entry Barriers: By using phone numbers as public keys, Celo simplifies payment exchanges among users.
- Stablecoins: Celo offers native support for multiple stable currencies linked to fiat currencies, enhancing its role as a payment method.
The Pioneering Carbon-Neutral Blockchain
Celo adopts a strategy to combat climate change by incentivizing the preservation of natural resources.
> Celo is an eco-friendly proof-of-stake blockchain platform with native stablecoins backed by a diverse portfolio of crypto assets. By dedicating a portion of these assets to natural capital, the reserve creates an incentive structure that aligns the demand for stablecoins with the protection of the environment. This mechanism acts as a large-scale carbon sink. As demand for currency increases, the reserve systematically protects rainforests and other carbon-sequestering resources, establishing an economic system where any growth in money supply leads to the conservation and regeneration of natural assets. — climatecollective.org
Recent Developments
Recently, CELO introduced a stablecoin linked to the Brazilian real. The cREAL will be available on Brazilian cryptocurrency exchanges such as Ripio, FlowBTC, and NovaDAX. Users on NovaDAX can even spend cREAL using the prepaid crypto card offered by the exchange. Meanwhile, Bitfy users can utilize cREAL across Cielo, Brazil's leading credit and debit card operator. Currently, Celo supports initiatives like ImpactMarket, a universal basic income program built on its blockchain that has provided aid to 10,000 recipients in Latin America. These moves align with the recognition by major global exchanges like Binance, Coinbase, and Crypto.com of Brazil as Latin America’s key market in 2022.
Additionally, in December, Kickstarter announced plans to develop an open-source protocol to create a decentralized version of its core functionality on the Celo blockchain.
Celo Launches the Valora App for Decentralized Money Transfers
The Valora app enables users to send and receive money in just seconds. Transactions on the Celo network can cost as little as 1 cent each. After downloading, users can load Celo (cUSD) dollars and send them to any contact in their wallet. The recipient receives a text notification to claim their cUSD. Valora users have various options for their Celo dollars: they can store them in Valora, convert them into local fiat currency at select retailers accepting cUSD, transfer funds to a crypto exchange, or redeem cUSD for gift cards at major global retailers like Amazon, IKEA, and Zalando.
Background
Celo was established in 2019 by individuals from various notable organizations, including MIT, Stanford, Google, Square, Circle, Visa, the Federal Reserve Bank, Harvard University, Cambridge University, the U.S. Department of Justice, Bank of America, Twitter, and the Gates Foundation. The Celo Foundation, a non-profit organization based in the USA, manages Celo’s development and growth.
How to Purchase $CELO?
For European citizens, I personally recommend Bitpanda* for its comprehensive services, including savings options, a credit card, and an intuitive interface with step-by-step guidance. Here you go*
Conclusion
The potential use case is vast, the ecosystem is expanding quickly, and the Celo team continues to grow. Recently, the Celo Foundation has brought on employees from prominent firms. Overall, the platform is performing admirably and heavily investing in a growing market... all while striving to make a positive impact in the fight against climate change. For me, this is a compelling reason to consider investing in Celo.
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With much love, Maximilian
This article reflects the author's personal opinions and should not be construed as financial or legal advice. All data were sourced on 28/02/2022 and may be subject to change. *Affiliate links
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