How CELO Cryptocurrency Works

Surely you have heard of Bitcoin but it is by no means the only cryptocurrency you can find on the Internet. There are many digital currencies or cryptocurrencies available and there is life beyond Bitcoin or Ethereum. For example, Zeal . Celo is a cryptocurrency that has only been in the market for a few years and that includes a social component and that seeks to promote financial inclusion .

Before talking about Celo we must stop to understand what a cryptocurrency or virtual currency is. You may have heard of Bitcoin but its use, how it works, or how these “payment methods” are created, which are totally safe, legal and have been a trend in recent decades.

  • What are cryptocurrencies?

The first thing to clarify is what cryptocurrencies are. They are virtual, digital and intangible payment methods. They are not physical bills or cards like the ones you have always used, but rather digital money used through encrypted transfers. In addition, it is decentralized or self-regulated money. In other words, there is no entity or bank in charge of exclusively “creating” this money.

  • What is the blockchain?

One of the most interesting concepts when talking about cryptocurrencies is the blockchain or chain of blocks. A concept or idea created by Satoshi Nakamoto (alias) more than a decade ago and that we could describe as a network of thousands of connected computers that form a public and verifiable network. All blockchain transactions are recorded in blocks.

They also explain it from the page itself: “A blockchain or cryptographic network is a broad term used to describe a database maintained by a distributed set of computers that do not share a relationship of trust or common possession.” In addition, they add: “The code of the Celo Blockchain has shared ancestry with Ethereum, a blockchain software for building decentralized general-purpose applications. Celo differs from Ethereum in several important areas but inherits a number of key concepts . ”

What is Celo;How CELO Cryptocurrency Works

Celo is a platform that works as a payment infrastructure for cryptocurrencies. And it has a clear objective that differentiates it from the rest: to reach all mobile phone users. Its purpose is clear: that financial activity is accessible to anyone in the world thanks to the fact that payments are made or received from any phone number around the planet.

It was created in 2020 with a team that includes experts in the field but also in technologies from around the world. A team in which we find people belonging to entities or companies such as Google, Twitter, GoDaddy, Visa … but also universities such as Cambridge or Pennsylvania or Harvard, among others. More than 130 members in total from all companies, NGOs, operators.

Celo boasts two values ​​on its website: single purpose and connection. On the one hand, they assure that “everyone has their own path of growth and that personal fulfillment depends largely on being able to reach one’s potential along that path.” On the other hand, they bet on connection or connectivity, on the community. Specifically, they say, for “a solid social community with meaningful relationships.”

Characteristics of Celo

Celo is committed to the blockchain focused on everyone, for the inclusion of everyone, as we have explained in the previous section. In fact, his idea is to turn the mobile phone into the access tool to all financial services. Celo is a blockchain system that was created with the intention of reaching more people, increasing the use of cryptocurrencies among smartphone users.

In addition to payments, it also supports the development of applications based on its blockchain ( dApps ) and uses two of its own or native tokens: CELO and Celo Dollars , a stablecoin or stablecoins associated with the dollar, as its name suggests.

  • Zeal Dollars and Zeal Euro

What does the Celo Dollars or cEUR mean or how does it work? One of the key characteristics of Celo is that it works as a stable currency with cUSD that offers the advantages of cryptocurrencies or transactions but adding the peace of mind or the advantage of not being limited to changes and the high volatility of other similar assets.

It is a stable cryptocurrency : stable criptomonedas or stablecoins their name from their difference from usual criptodivisas characterized by being volatile and subject to change continuously. But in this case, they are cryptocurrencies that are usually associated with the value of a fiat currency (which can be the euro or the dollar) or material goods such as gold, for example. In this case, Celo Dollars is associated with the US dollar . What differentiates it from others? It can be an option for investors looking for less volatility.

In this specific case, Celo ensures that the value of each cUSD is equal to one US dollar thanks to a “programmatic reserve”, as indicated. The same goes for the euro. How does the cryptocurrency backup reserve work? It is kept out of the chain and is always managed to “preserve value and minimize volatility.”

  • Shares and capitalization

Celo’s maximum share limit is 1 billion currencies. Currently (although this data changes depending on when you read these words) the shares in circulation are around 33% of the total. It currently occupies the 62nd position on CoinMarketCap with a capitalization of 1,956,030,828 USD (data that may vary depending on when you check this)

How CELO Cryptocurrency Works

It has a network in which there are three types of collaborations to make the platform work: thin clients or Celo applications (functioning as wallets on mobile devices), validation nodes or computers that participate in the system to validate transactions or produce blocks. . And, finally, the full nodes that function as a bridge between the first and the second and are in charge of receiving requests and forwarding them to the validation nodes.

Both the validation nodes and the full nodes receive their corresponding reward. The validation nodes receive the corresponding part of the block validation while the full or full nodes receive it according to the rates paid by the thin clients that use Celo. Clients include in each transaction the address of a node that receives the fee when the transaction is completed.

Among the applications mentioned above is the Celo Wallet application. They explain the following from the instructions on their website: “The Celo Wallet application is a totally unmanaged wallet that allows users to safeguard their funds themselves using their own passwords and accounts. All critical functions, such as transaction submission and balance checking, can be performed without confidence using the peer-to-peer thin client protocol. However, the wallet uses a few centralized cloud services to improve the user experience where possible. ”

Where to buy

Where can we buy Celo? The cryptocurrency is available in the main online markets and we just have to consult a page like Cryptorank to check the price at all times, the highest in the last hours or the lowest.

  • Binance

The largest and most popular in the world is Binance, an exhange where we can buy Celo and many others. In addition, some of them we can buy through credit card. Like most, it has a commission: in this case the commission is 0.1% although it may vary depending on the time of purchase or if you use its own currency, BNB . It is a complete website, recommended and full of options of all kinds. We can buy, have information on profitability, etc.

  • Coinbase

Another of the basic and most common when buying cryptocurrencies is Coinbase. Here we can also buy Celo and many more. You can find Bitcoin, Ethereum, Litecoin, and many more cryptocurrencies. In addition, like the previous one, it allows us to buy the price and how it has changed, see a table of the last hours, know the market capitalization … We simply have to look for the asset that interests us and touch ” Trade ” to have all the details. In this case, Celo.

  • Kriptomat

At Kriptomat we can also buy Celo. As in the rest, we can show all the available cryptocurrencies and we will see some details such as their price, the change in the last hours or the market capitalization. Go to ” Purchase ” and you will have to register on the web to start operating. Kriptomat allows us to buy, sell or store currencies and allows us to buy directly in euros in many cases.

by Abdullah Sam
I’m a teacher, researcher and writer. I write about study subjects to improve the learning of college and university students. I write top Quality study notes Mostly, Tech, Games, Education, And Solutions/Tips and Tricks. I am a person who helps students to acquire knowledge, competence or virtue.

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