Last updated on December 12th, 2023 at 02:49 pm
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Decentralized finance plays an important role in the future of web3, or the third generation of the Internet. However, companies have found it difficult to get DeFi projects into the hands of mainstream users.
That’s where a project called Celo comes in. With their mainnet having launched back in 2020, the Celo project is a blockchain ecosystem that aims to connect cryptocurrencies to smartphone users. It gives people the ability to send money to anyone from their smartphones, using a decentralized network and smart contracts.
How does the Celo project work?
The Celo project has three main components, all of which have been built from scratch, according to its developers. This includes the core blockchain software, Celo’s core libraries and the apps, which act as the end-user applications that smartphone users will use to make payments.
Most interestingly, Celo isn’t meant for the most savvy smartphone users. Instead, the project targets those with low-end smartphones and poor internet connections, making it important for developing countries like India.
The project uses people’s phone numbers as public keys, instead of the difficult to remember 256 bit keys that are usually used in the crypto ecosystem, which should lower the entry barrier significantly.
The project’s token, called CELO, is also based on the proof-of-stake (POS) system, which makes it more environmentally sound than those using proof-of-work (POW) systems. The Celo project uses the token for paying transaction fees and participation in governance operations.
The platform also has 3 native stablecoins, called the Celo Dollar (cUSD), Celo Euro (cEUR) and the Brazilian Real (cREAL). The stablecoins are backed by the CELO token and a basket of other crypto assets, which includes Bitcoin and Ether.
Advantages of the Celo project
The big advantage of the Celo project, of course, is its mobile-first nature. The fact that the platform targets not only smartphone users but the low-end smartphone users could be an important step for increasing the adoption of cryptocurrencies.
But being designed for low-end smartphones also means that the DeFi platform has to be ready for slower Internet connections. As a result, the Celo project is designed to be extremely fast, allowing its clients to synchronise the blockchain in the shortest time possible and complete database lookups in short time frames. It’s designed to overcome problems like high latency and low bandwidth, which are often associated with users of low-end smartphones.
Further, Celo is also environmentally sound, having been designed on the POS consensus system. It is also part of the Climate Collective, a coalition of companies that aim to collaboratively build “at the intersection of web3 and climate action”, according to Celo’s website. “Through grant funding, member partnerships, and community education, we support a range of impactful products and interoperable protocols that progress the Regenerative Finance (“ReFi”) ecosystem,” the website.
How to buy Celo?
The CELO token is listed on WazirX and can be bought, sold, and traded on both the INR and USDT markets. At the time of writing, the token was priced at ₹238.
The token is part of WazirX’s Rapid Listing Initiative, which brings more tokens to the exchange fast. The crypto exchange has also partnered with the Celo Foundation to give away ₹40,00,000 worth of Celo tokens. The giveaway will run till March 31 and will include a trivia contest, quiz, and highest trader kaun marathon.