Disruptive players often benefit from the technologies that exist before them. The crypto market is an emerging market with hardly one hundred million active users. However, the telecom market is expected to reach over seven billion by 2025. In order to exploit these differences and consequently increase crypto adoption, a crypto startup called Celo seeks to use phone numbers to build a global payment infrastructure. Let’s understand what Celo is and how it works!
So, What is Celo?
Celo is a blockchain protocol that aims to facilitate a global payments infrastructure by leveraging phone numbers. The protocol wants to use phone numbers as a proxy for public keys. It also wants to use it for issuing native tokens, thereby making the financial activity accessible to anyone globally. Celo also allows the development of smart contracts and decentralised applications on its blockchain. Users can use this feature and contribute to initiatives like Universal Basic Income and other social causes.
Read About: Everything you need to know about Dapps
What is Celo Wallet?
Celo Wallet is Celo’s first application that is a social-payments system built around mobile phones. Using this mobile-first approach, Celo aims to tackle the usability and price stability aspects of crypto. Further, the Celo ecosystem uses the following technological innovations:
- Fast and light transactions by optimising processes
- The platform also allows users the ability to send crypto assets to a phone number. This is done by using a lightweight identity protocol that maps the hashes of phone numbers to public keys, thus, making it possible for anyone with a smartphone to send or receive cryptos.
- Automatic deduction of transaction fees using stablecoins.
- A central reserve of stable coins to provide stability, transparency and auditability to the ecosystem.
How does Celo work?
The Celo protocol works in an open and distributed manner. It enables users with phone numbers to send and receive cryptos by mapping the phone numbers to public keys. Its cryptographic protocol allows applications to make transactions and perform computation. Besides, the Celo Wallet application aims to allow end-users to manage multiple accounts and make payments. Some foundational features of the network include
- Stable value currencies: The ecosystem uses multiple ERC20-like stable currencies that are pegged to fiat currencies like the US dollar. These stablecoins are used to pay for transactions across the world. Two examples of stablecoins are cUSD and cEUR.
- Phone number linked accounts: The platform maintains a secure mapping of phone numbers to allow crypto payments using phone numbers.
- Immediate syncing on slow connections: Celo is designed to manage high latency, low bandwidth or high-cost data tariffs. Additionally, the network uses zero-knowledge proofs to help improve performance.
- EVM compatibility: Celo includes a smart contracts platform that is compatible with Ethereum Virtual Machine (EVM).
- Self custody: Users on the platform do not need to depend on third parties to make payments. They have access to and full control of their account keys.
The CELO token: a snapshot
CELO token is the native token of Celo platform. It serves as a utility token that enables users to participate in the network consensus and pay for on-chain transactions. The Celo protocol has a minimum gas price that applies to all contract executions. Part of the gas fees goes to Celo’s community fund which provides for general upkeep on the platform. In addition to that, token holders can also vote on changes to the protocol. The network also features another stable asset called Celo Dollars (cUSD) which is pegged to US dollars. Token holders can also stake CELO and become a validator to earn rewards.
Knowing what you know now about the CELO token, We are sure you are wondering how to buy celo crypto. Now, you can buy a CELO token with Zebpay.
Following are the key hallmarks of Celo:
- Celo is a blockchain platform that aims to use phone numbers to facilitate a global payments infrastructure.
- The platform seeks to use phone numbers instead of public keys to access crypto wallets.
- Importantly, Celo aims to allow users to develop smart contracts and dapps and use the money to solve social issues.
- The native token of the Celo platform is the CELO token. The CELO token is used as a utility token for transaction fees. Further, the token can also be used for participating in on-chain governance and staking. You can now buy the CELO token on Zebpay’s crypto exchange platform today!