A Look at the Celo White Paper Celo is an open, decentralized platform by Claire Belmont The Celo Blog
Similarly, when the price of cUSD is below the peg it means there’s less demand for it than supply available. In such instances, the protocol contracts supply by buying cUSD off the market in exchange cGLD from the reserve, again via a Uniswap-like decentralized exchange called CP-DOTO. Users holding enough CELO (and cGLD) are able to join the network as validators, and they are able to propose and vote on protocol changes. Any proposals also require a small amount of CELO be sent to a smart contract, where they are locked in. If the proposal is ultimately approved these funds are returned after a waiting period of three days has elapsed.
- IP addresses or bank routing and account numbers could be additional methods.
- While the Celo app is the preferred way to send Celo Dollars (cUSD), the platform’s stable coin, it is not needed.
- Potential purchasers must conduct their own due diligence of any issuer, cryptocurrency, token or token-based security.
- When a light node has a transaction they attach the small gateway fee to it and when it is passed along to the full node this gateway fee is the incentive for the full node to pass the transaction to the validators.
Celo therefore allows for multiple stable-value currencies where each coin is pegged to a measurable value such as the Dollar, Euro, basket of goods in Greece, the price of a barrel of oil, and more . Each Celo stablecoin maintains its peg by adjusting its supply to match demand. The family of stablecoins is collateralized via a basket of crypto-assets that acts as a reserve and that acts to absorb volatility risk. In addition, the amount of value passed through mobile phones is growing each year, even without digital assets being accounted for.
Best exchanges to buy Celo Gold
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. Validators play an important role in participating in the consensus mechanism of the Celo Platform. They help secure the Celo network and act independently to verify transactions and propose blocks to add to the blockchain. 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.
Celo Gold enables participation on the Platform, with the opportunity to earn rewards through network participation. Celo’s stability mechanism and token economics are designed in such a way that demand for cGLD directly increases as demand for Celo Dollars (cUSD) and other stable value assets increases. Therefore, for a cryptocurrency payments solution to prosper, it should offer stable-value assets and a frictionless user experience that makes exchanging value as simple as sending a text message. On or around 1 AM UTC, May 12, (6 PM PDT, May 11) Celo Gold (cGLD) will be available through a Dutch Auction on CoinList.
In the future the team has said they will expand the stablecoin offerings to the cEUR and cGBP among others. This post is being distributed by Amalgamated Token Services Inc., dba CoinList. CoinList operates CoinList Services LLC (“CLS”), a technology company that offers compliance and technology infrastructure solutions for token issuers, and CoinList Markets LLC (“CLM”), a licensed money services business (NMLS # ). Neither CoinList, CLM nor CLS conducts investment diligence on token issuers or any tokens or token-based securities listed in this post nor provides legal, investment, banking, broker-dealer or tax services. In conclusion, the Celo protocol introduces a mobile-first protocol designed to be user friendly by addressing barriers to cryptocurrency adoption whilst remaining as inclusive as possible.
In addition, if the reserve ratio is below target level, a substantial part of the block reward minted by the network gets allocated to the reserve. When the price of cUSD is above the peg it means there’s more demand for it than supply available. In such instances, the protocol expands the supply of cUSD by minting new cUSD and selling it for cGLD via a Uniswap-like decentralized celogold exchange called CP-DOTO. Finally, attaching phone numbers to Celo addresses enables capturing reputation (like a credit score). It’s quite complicated to explain but in short EigenTrust is a decentralized algorithm where a phone number’s score is defined by the number of other phones who trust it weighted by their reputation scores (similar to how PageRank works).
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There are currently two native crypto assets that are used in the Celo network. When a light node has a transaction they attach the small gateway fee to it and when it is passed along to the full node this gateway fee is the incentive for the full node to pass the transaction to the validators. In addition to the official staff at cLabs and Celo there are also a group of 50 ambassadors from 16 countries around the globe who maintain the Celo community, https://cryptolisting.org/ write blog posts, manage local social media channels, run local events, and connect with local Celo partners. The Celo team consists of dozens of individuals from all over the world and from multiple disciplines that include software development, blockchain engineering, marketing, business, finance, and others. It’s this broad, deep experience base that has recommended Celo as one of the top projects to watch in the blockchain space.
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Rene started his career in global capital markets at Morgan Stanley and also worked at McKinsey, the World Bank and TechnoServe. Co-founder Sep Kamvar is the inventor of EigenTrust, one of the most well-known protocols for trust computation in decentralized systems. His co-founders Rene Reinsberg and Marek Olszewski founded a machine learning startup that spun out of MIT and was later acquired by GoDaddy. Other Celo community contributors come from Apple, Facebook, Google, Square, Visa, Twitter, and The Federal Reserve Bank of New York. It’s worth noting that this scheme could work with any identifier that can receive secure messages, not just phone numbers.
Celo Price Live Data
Celo-gold price is $0, down 0.00% in the last 24 hours, and the live market cap is -. 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 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. 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.
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. To maintain a high collateralization ration, which is crucial for the stability of the system, there is a fee levied on transactions that gets added to the reserve. It is also possible in the future that some portion of each block reward will get added to the reserve if necessary to maintain stability.
With the main net for CELO launching on May 18, 2020 the CELO token hasn’t been trading for very long. And aside from some fireworks in late August and early September the token has remained around the same level. 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.