What is Celo (CELO)?

Celo is a platform that acts as a global payment infrastructure for cryptocurrencies targeted at mobile users, using e-mail addresses and phone numbers as public keys. That means that through Celo, users can access decentralized financial services, send money, and pay with cryptocurrencies just by using their smartphones.

In addition to basic payments, Celo can support the development of decentralized applications on its blockchain. Since Celo is a decentralized blockchain platform built with a combination of PoS consensus mechanism and compatible with Ethereum‘s virtual machines, this allows DApps built on Ethereum’s foundation to be easily deployed and operate on Celo.

What problem was Celo created to solve?

In the age of digital technology, the question of what is a cryptocurrency seems to have ceased to be a difficult question for people. originally appeared in the 90s, but it was not until the 21st century that cryptocurrencies proved their position. This is the “fever” of financial investors because of the benefits and profitability that cryptocurrencies bring. We also see the advantages of cryptocurrencies such as fast transactions; users can receive and transfer money anytime, anywhere quickly; and the transaction costs of cryptocurrencies are mostly free or very low fees. In addition, customer information will be kept confidential in the best way. With advanced technology, fraud will be limited and not dependent on intermediaries.

The challenge, however, is that crypto-assets are highly volatile and require long hexadecimal cryptographic addresses to transfer value — making it difficult for cryptocurrencies to be used as a medium of exchange.

What are two native tokens on Celo?

Celo operates two native tokens: CELO, a governance asset for voting on changes to the protocol and Celo Dollars (cUSD), a stablecoin that reflects the value of US dollars.

CELO is the native token of Celo. This token is used for the following purposes:

Governance: voting on network governance decisions through staking.
Cybersecurity: staking CELO to secure the network, participate in consensus and earn rewards.
Transaction fees: payment for on-chain transactions

You can store this token in the following wallets: Frontier Wallet, Exchange Wallet, or Coin98 Wallet

As for Celo Dollars, it brings the efficiency and transparency of cryptocurrency transactions and helps reduce the volatility of these assets. ,.

How does Celo work?

Celo is a mobile-first solution that includes the following three elements:

Lightweight identity for a better user experience
The stability mechanism for stable-value currencies
Incentives and governance system for platform sustainability

Lightweight Identity (Lightweight Identity System)

The ability to send currency to a phone number makes it easier for anyone with a mobile phone to send and receive digital currency to anyone in the world. It has bypassed the traditional approach of all long and complex cryptographic addresses.

Address-based Encryption

Cello allows mobile payments using something called “address-based encryption.” Phone numbers can be used instead of addresses, which simplifies the user experience.

Reputation

Celo uses Eigentrust to measure credibility. EigenTrust is a decentralized algorithm where the score of one phone number is determined by the number of other phones that trust it based on their reputation score.

Stabilizing Value

Stablecoins offer value to crypto investors and traders similar to the value that fiat provides to traditional market participants, which is stability.

The stable and efficient nature of stablecoins helps people feel more confident when trading in the cryptocurrency market. That is, many people feel more comfortable entering the market today. As there are more market participants, trading volume and market capitalization also increase.

Celo allows multiple currencies with stable values where each coin is pegged to a measurable value like the dollar, euro, basket of goods in Greece, price of a barrel of oil, etc. Each Celo stablecoin maintains value by adjusting its supply to match demand.

Incentives and Governance (Rewards and governance model)

Through a proof-of-bonded-stake consensus model, it incentivizes long-term Celo Gold holdings by calculating rewards according to the amount of bonded Celo Gold and the length of time remaining in the bond.

For a small submission fee, anyone can suggest protocol improvements, along with an implementation fee.

Proposals to introduce new stablecoins or new crypto assets to the reserve also follow a similar process. The only difference is that, instead of paying a submission fee, proponents have to stake Celo Gold.

What is the future of the Celo project? Should I invest in the CELO token?

An ecosystem that fully integrates the puzzle pieces with products that can be applied in practice and can solve problems that other ecosystems are facing will be the first step to evaluating an ecosystem. In order for the market to become stronger and more developed, it is necessary to have many strong ecosystems.

Therefore, Celo needs to integrate more products to become a fully integrated ecosystem in the future.

Celo (CELO) appears to be one of the most bullish cryptocurrencies this year. According to CELO’s achievements in recent months, CELO is considered a good investment in 2022.

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