Lets talk Blockchain | Celo
WHAT IS CELO?
Celo is a blockchain that enables users to transmit value to one another using only a phone number, eliminating the need for a cryptocurrency wallet. Essentially, users may send crypto payments to one another via text message. The Celo blockchain supports a number of transactional stablecoins, including its own Celo Dollar.
What are 3 things CELO is used for? Staking, governance, and stability
- STAKING CELO
Staking Celo is the practice of purchasing and reserving a specific number of Celo Tokens in order to become an active validating node for the network. By merely holding these coins, this then makes the holder a vital part of the network’s security architecture and gets rewarded appropriately.
- GOVERNANCE
On-chain governance is a mechanism for organizing and executing Celo blockchain modifications. The rules for implementing modifications are written into the blockchain protocol in this kind of governance. Changes are offered by developers via code updates, and each node votes on whether to accept or reject the proposed modification.
- STABILITY
The Celo price stability protocol may be regarded of as a hybrid crypto collateralization / seigniorage-style paradigm, aiming to provide the best of all three techniques. The protocol promotes a stable currency environment, ecosystem the first of which, the Celo Dollar, will be tied to the US dollar.
TOKENS
Celo and Celo dollars ($cUSD)
Celo offers two native crypto assets:
- Celo. It is the governance currency of the platform, of which there is a limited amount. A first part of this amount of coins was initially released as a reserve, while the rest will be minted over time.
- Celo Dollars (cUSD). CUSD is an ERC-20 stablecoin that is pegged to the US dollar. To maintain this relationship with the USD, the platform supplies more cUSD or buys cUSD.
WHY I PREFER CELO
- The Problem
Remittances are a huge part of Africa’s inflow of funds and companies like Western Union, Moneygram and WorldRemit are running the show. With that said, fee’s are extremely high and this doesn’t benefit the Sender or the Recipient in anyway.
- The Solution
Blockchain Remittances. Using Celo Dollars (cUSD) drastically reduces transaction fee’s and time. Celo transactions are completed in 5 seconds, and the greatest part is that this latency can easily lowered as the network expands. Celo offers all of this while also providing a more robust security architecture and all you need is a phone number!
The Bottom Line
CELO / cUSD / cEUR eliminates the need for numerous intermediaries in traditional cross-border money transactions. Money is sent directly from Mobile to Mobile using a phone number eliminating the need to travel through two other correspondent banks and lowering transaction time and cost.
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