There are many recent projects whose main objective is to push the mass adoption of cryptocurrencies. r all
In this category, we find in particular Celo, a mobile-first blockchain ecosystem who wants to allow everyone, even your grandmother, to jump into the deep end of crypto and decentralized finance from their smartphone.
This is even his primary argument: use the telephone as much as possible because even unbanked people in the world have a telephone.
Can Celo become the most mainstream blockchain? In any case, you will see, it is the blockchain that wants to reach the most people, and in particular, the populations of developing and emerging countries.
If this intrigues you, we suggest here to see the broad outlines of this new network which has a lot of promise...
What does Celo Blockchain want to bring to the crypto universe?
For many, the main goals of widespread blockchain adoption are price volatility and usability issues (just think about the length of wallet addresses)
Celo wants to change all that en making the world of crypto accessible (and above all understandable) to everyone. This open-source, mobile-first blockchain ecosystem wants to drive the adoption and use of cryptocurrencies by solving usability and price volatility issues, while bringing blockchain technology and decentralized finance to smartphone users (or more than 7,69 billion people by 2027).
What is the philosophy behind CELO?
In fact, few blockchains describe the philosophy that fuels them. CELO works with many economists. More precisely, CELO crypto claims (among other things) the thinking of an economist who can be described as alternative. It is Charles Eisenstein, the author of the book " Sacred Economics". The book has not been translated into French but it has found some followers in the English-speaking world. The book offers innovative economic solutions such as a negative interest currency (similar to Silvio Gesell), social dividends. Eisenstein advocates a universal basic income. Similarly, the author was very present during the movement Occupy.
CELO blockchain's mission is to provide a global financial system accessible to all populations around the world.
A blockchain that aims to be “green” and ecological
With the recent report of IPCC which is alarming that our climate situation, Celo blockchain insists on its very low ecological impact (compared to other networks).
In fact, you should know that among the criticisms addressed to cryptocurrencies, it is the environmental impact (especially of Bitcoin) which is singled out. Thus, Celo and other blockchains like Algorand for example, try to be as green as possible.
What solutions does Celo offer?
To overcome these two obstacles, Celo offers its users several solutions. And especially :
1. Stabilize the value of crypto
Celo aims to reduce the volatility of cryptocurrencies by using a digital asset reserve wallets, the Celo reserve, as a method of elastic token supply.
Celo currently has two people stablecoins : the cEUR and the cUSD. The Celo Dollar (cUSD) is the Celo stablecoin that tracks the value of the US dollar, and the Celo Euro (cEUR) the one backed by the value of the euro.
Currently, Celo holds a reserve of more than $500 million in assets. With the latest crisis that hit the Waves network with the (temporary) fall of the USDN stablecoin, reserves have never been as important as today.
This strong reserve of Fiat currencies serves as a guarantee for its own stablecoins.
2. Friendly addresses while remaining confidential.
On Celo, users cant associate their telephone numbers with one or more addresses of Wallets on the blockchain. Which means payments can be sent and received by simply providing the correct phone number.
The Money app had already stood out with such a way of doing things, very appreciated by novices in particular.
Displaying phone numbers on the blockchain could nevertheless constitute a violation of privacy and make users much more vulnerable to scammers and hackers.
For guarantee their confidentiality, and therefore their security, Celo adopts a system that in addition to using phone numbers also involves a pepper (a secret value added to a password before hashing). Pepper is a secret value generated by ODIS (Oblivious Decentralized Identifier Service), a service managed by a group of reputable network participants. Celo recently partnered with Deutsche Telekom, whose subsidiary T-Systems MMS also works as a validator of its network.
Users must receive their own pepper from ODIS to associate their phone numbers with their wallet addresses on the blockchain. Thanks to the latter, they will be able to calculate a special and unique value which will act as an identifier for secure all their transactions on the blockchain.
What are Celo’s crypto assets?
As already mentioned, Celo has two native crypto assets that are used on its network: cUSD and cEUR. Those are stablecoins indexed respectively to the dollar and the euro. There is also a third asset used at Coinbase and a limited number of other exchanges: Celo Gold (cGLD): ERC-20 tokens which were sold at Dutch auctions on Coinlist or paid to its first investors.
Recently, CELO created a stablecoin indexed to the Brazilian REAL: cReal. The Brazilian market is a huge market because Crypto adoption is particularly strong in emerging markets.
Celo blockchain is expected to offer more such stablecoins. This is perhaps its great strength and its greatest capacity to attract emerging countries.
The protocol that ensures the stability of cUSD, for example, is a hybrid model of seigniorage and crypto-collateral. This means that the collateral backing cUSD is a mix of CELO and other cryptocurrencies, intended to adjust the supply of cUSD and maintain its peg.
To maintain a high collateralization rate, which is crucial for the stability of the system, fees are taken from transactions and added to the pool. It is also possible in the future that a portion of each block reward will be added to the pool to maintain its stability.
cUSD can be minted or burned at any time to maintain stability and peg to the US dollar. It is not the same for CEUR which has a fixed supply. It is through this fixed supply cryptocurrency that Celo maintains its price stability, as well as most of its blockchain governance operations.
What uses for CELO tokens?
CELO tokens can be used for:
- Participate in platform governance decisions.
- Support the over-collateralization reserve which helps stabilize currencies on the platform;
- Financial support dApps in the ecosystem.
- Incentivize validators who secure and operate the network.
Users holding enough CELO (and cGLD) can join the network as validators. They will also be able to propose and vote on protocol changes. Any proposal also requires a small amount of CELO to be sent to a smart contract, where it is locked. If the proposal is ultimately approved, these funds are returned after a three-day waiting period.
The performance of CELO assets
At the time of CELO mainnet launch on May 18, 2020, the CELO token had not been trading for very long. And after great performances at the end of August and beginning of September, it has stabilized to remain approximately at the same level.
Unfortunately for early investors, this level is between $1,50 and $1,70, which is well below the $5,02 average price of cGLD during the Dutch auction held in May 2020 on Coinlist. In fact, just one week after this auction, CELO fell back to just $0,83 and the highest level it reached was $4,73 on September 4, 2020.
According to CoinMarketCap, its current value is around $1.
A growing ecosystem
The CELO ecosystem is certainly still weak in terms of decentralized application offerings. However, we can say that the few applications that there are already show us the potential of this network.
As you can see, there are dApps for (almost) all tastes. You can use ubeswap for example to make exchanges. You can also use the Valora app to do DeFi.
To make the most of this ecosystem, we are preparing an article and a comprehensive video on the subject.
What are the disadvantages of Celo?
Among the black points of Celo, the project is not very "decentralized" as we were able to note in our article " Crypto projects are not as decentralized as you think"...
This makes it a very corporate network which is largely run by private investors and financial institutions. This makes it a potentially attractive element for crypto users who largely prefer the most decentralized projects. It is a fact.
Beyond that, the projects built on Cela are not necessarily centralized and there is a range of very interesting decentralized applications there.
Likewise, for this to happen, its ecosystem would also need to expand. Some criticize Cela for having a weak ecosystem with few "mainstream" projects. For example, video games and NFTs are big springboards for attracting new users.
That said, the Celo ecosystem is nevertheless very promising and this is the subject of a future article.
Don't forget to subscribe to our newsletter to find out which applications on Celo are worth checking out.
Our opinion on Celo: A blockchain that has everything to succeed
Although Celo has yet to achieve its goal of reaching the mainstream, it has seen massive adoption in the cryptocurrency community and has received sponsorship from over 100 major companies in this industry.
However, it is still too early to talk about mass adoption. That said, with everything we have just seen, it is true that Celo has everything to succeed. Succeed in reaching populations in emerging countries in particular. This is where the main target of Celo blockchain lies, indeed.
Moreover, finally, we could also highlight the fact that the Celo blockchain pushes many entrepreneurs to create applications on the network. Grants, aid and numerous support are provided for anyone who wants to get started in creating a crypto business. It is therefore, in our opinion, an excellent growth strategy to encourage the creation of businesses hosted on the network.
Understand that the project is still in its early stages, and that it is therefore wise to follow it closely. Celo's great strength is (in addition to its community, as vast as it is passionate), for having focused on mobile-first to make crypto even more accessible.
? How to buy CELO crypto?
You can buy CELO token on most exchanges. You can buy CELO on Binance, Kucoin or Bybit.
—->Buy CELO token on Binance.
? What is the crypto prediction for CELO?
Some estimates claim that in 2025 the price of CELO could exceed $10. This could be achieved through an increase in the number of smartphone users worldwide. Thus, CELO crypto would become more visible to more people.
Should you invest in CELO crypto?
Without giving you financial advice, you need to do your own research. ur know whether or not to invest in CELO crypto. A fundamental analysis and management of your risks must be considered.
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Note: No financial advice is given in this or any other article on zonebitcoin. This is information of which you are the sole judge and master. Be responsible with your investments and only invest as much as you are willing to lose.
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