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This article is a complete guide on Celo blockchain (CELO). The Decentralized Finance (DeFi) domain has been all over in the news for the last two years and touched an evaluated value of more than USD 11 Billion LOCKED in the DeFi lending market alone. The Celo could be one of the profitable projects. Is CELO blockchain the hidden blockchain for corporates and 10x profitable for investors? Let’s take a look at this in more detail.

What Is Celo Blockchain(CELO)?

Two of the most significant obstacles to the large-scale adoption of cryptocurrencies as a tool of payment are ease of use and buying-power volatility. Celo is the blockchain that manages these problems with an address-based encryption strategy and a stable-value asset. 

The Celo blockchain is especially a mobile solution that’s created of the following three elements:

  • Lightweight for a more enjoyable user experience.
  • Resilience tool for stable-value coins
  • Incentives and governance guidelines.

The above characteristics create a proof-of-stake smart contract platform. It is founded on Ethereum. The Celo protocol is supported by a preliminary digital asset called Celo coin. It is ERC-20 compliant and utilized to facilitate token delivery via decentralized exchanges. The platform has two born tokens. The CELO is a proof-of-stake (PoS) token and it is employed for transaction fees, governance contribution, and other essential functions. In the future, the platform plans to accept various stablecoins. It already utilizes the Celo Dollar (CUSD) stablecoin.

How Does Celo Work?

The Celo network depends on three backers to assist in driving its platform: 

  • Light Clients – The first one is the applications executing on users’ mobile phones, such as Celo’s mobile wallet.
  • Validator Nodes – In this, laptops or machines that partake in Celo’s consensus instrument, confirm transactions and create new blocks.
  • Full Nodes – In this, machines function as the route between Validator nodes and mobile wallets, accepting proposals from clients and sending transactions to validator nodes.

As mentioned earlier, the network depends on Lights Clients, Validator Nodes, and Full Nodes to complete Celo work as its essence supporters. Light Clients are the network’s applications operating on its user’s mobile devices. An illustration of such an application is the Celo mobile wallet. Validator Nodes are computers that altogether contribute to and partake in the network’s consensus mechanism. They also confirm transactions and form new blocks. 

Now, these nodes accept requests from light clients and send transactions to validator nodes. CELO owners are in the custody of voting in Validator nodes. Celo also depends on the Proof of Stake management instrument named the Byzantine Fault Tolerance (BFT). The network utilizes BFT to maintain its distributed network of machines in synchronization. To become a validator node, users must stake 10,000 CELO tokens. According to the configuration of the network, there can only be 100 validators at one time. These validators each obtain rewards from a portion of the block reward for validating the transactions. Yet, full nodes also obtain prizes from costs given out by light clients.

What makes Celo Unique?

The whitepaper further states that Celo is a blockchain network that employs user email addresses or phone numbers as public keys for transactions. Its selling attribute is also that it concentrates primarily on smartphone users. The network asserts that the rising number of smartphone users without cryptocurrency wisdom is disturbing. Yet, building a service that uses both technologies acknowledges it is decrypting a future issue. 

This is why Celo is bridging the huge gap between them and expanding the global adoption of cryptocurrencies. The protocol’s essence also allows users to harness the advantages of DeFi, as it also backs the design of DApps and smart contracts. Another notable attribute of Celo is how the blockchain automatically computes transaction fees. This permits users to pay transaction fees for the service in any currency.

What is CELO Token?

CELO is an ERC-20 token and the local token of the Celo network. It is also a utility token with benefits across governance and network security and is utilized for network payments. Token owners can vote on network governance judgments via staking. This implies that they can utilize their assets to partake in elections by voting for clusters of validators. Holders can also stake the token to secure the network and partake in consensus while making prizes. Alternatively, the token also protects payment for on-chain transactions in the network. Holders will require the Celo Developer Wallet to transmit, obtain, and swap CELO by utilizing decentralized phone number validation.

How To Buy CELO Crypto?

Step 1 – Sign Up

Step 2 – Fund Your Account

Step 3 – Purchase CELO Crypto

After having sufficient balance, you can then buy your CELO tokens. Click on trade, choose CELO from the search bar items, and enter the amount you like to buy. You will then check and verify the amount and pay fees for it. The new assets will automatically display in your account, and you can choose to either keep, trade or sell them. You will also require to make sure that you have a wallet, allowing you to store it safely.

Is CELO the hidden blockchain for corporates and 10x profitable for investors?

The CELO could be the game-changer as it has already achieved various milestones. Some of the milestones are as follows:

1) Deutsche Telekom

Making Mobile Payments on Celo: Image Source: Celo Medium

By creating on Celo’s mobile-first platform, mobile transports like Deutsche Telekom can swiftly incorporate mobile-friendly blockchain-based applications and help clients in unique, significant forms. Deutsche Telekom is ushering in this action, and it will be exciting to witness how mobile carriers and other companies take benefit of all that the blockchain and cryptocurrency market has to present.

2) Celo Euro (cEUR)

The CELO team has established Celo Euro (cEUR). This is the second local Mento stablecoin on the platform for mobile payments. This cEUR produces a completely new remittance drive for the European Union where users can swiftly and effortlessly send digital money between nations with a phone number. It’s as straightforward as transmitting a text message and can be accomplished in as short as 5 seconds for less than $0.01. Integrated with the unrestricted character of Celo’s platform, the CELO team can allow a mobile-friendly layout of digital money that can be utilized by the 6 billion smartphone users around the globe.

3) Optics

4) PayU

5) Valora

6) Donut Hardfork

On May 19th, 2021, the donut hardfork was executed. The Donut Hardfork is a non-disputable hardfork that contains many compelling network upgrades pushing Celo to be more gas efficient, enhancing interoperability, and permitting Celo users to link to widespread tools like MetaMask.

Significant updates from the Donut Hardfork:

  • CIP-20: Toolkit for counting cryptographic operations that are valuable to smart-contract devs.
  • CIP-25: This will help boost prospective bridging to Solana, Cosmos, and NEAR.
  • CIP-35: Pushes Ethereum transaction styles available on Celo, which will allow entry to all Ethereum’s tools.

Conclusion

Celo is an open platform maintaining different services, including distributed applications, smart contract expansion, and global payments. The various milestones could make this a profitable investment.