There's a cryptocurrency out there that you can send as easily as putting in a mobile phone number.
This project is backed by big names,
banking the unbanked with smartphones,
built as the first mobile decentralized finance platform.
Mobile is so obviously the future.
As younger generations sprout up,
the amount of mobile devices is going to go absolutely parabolic.
And one project is poised to lead that market in terms of blockchain.
Find out what it is and where the potential lies.
Let's get it!
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My name is Ben.
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In this video, we're going to be discussing the prospects of Celo.
And at the end of this video, I'll be giving you a price prediction,
so make sure to stick around until the very end of this video.
Celo was marketed as the competitor for Facebook's Libra.
With over 75 partners,
the nonprofit Celo Foundation's Alliance for Prosperity offers a way for developers to build decentralized mobile apps
that are based on Celo's blockchain platform and USD stablecoin.
Celo has two primary coins or digital assets----
CELO, which is the governance token, and Celo Dollar, which is the stablecoin that can be sent to other users.
Although, in the future, the team has stated prior that they will expand the stablecoin offerings
to the cEUR and the cGBP, among other countries.
Partners of Celo include many of the same names backing Libra.
The Alliance for Prosperity includes Andreessen Horowitz,
Coinbase,
Bison Trails,
Anchorage,
Mercy Corps,
GiveDirectly,
Grameen Foundation, Maple and Polychain.
All Celo's partners have made a somewhat vague commitment
to backing development efforts of the project, building infrastructure,
implementing desired use cases on the platform,
integrating Celo assets in their projects,
or collaborating on education campaigns in their communities
to further advance the use of blockchain technology,
according to Chuck Kimble,
Celo’s cLabs head of business development and head of the Alliance.
Besides partners, Celo has a lot of investment firms behind it as well
including Andreessen Horowitz,
Electric Capital,
Greenfield One,
Coinbase Ventures,
a16z Crypto,
9Yards Capital,
Polychain and much more.
So let's discuss how Celo is used.
Users can exchange other cryptocurrencies for Celo Gold,
then exchange that for the stablecoin, Celo Dollars,
which they can then spend,
though they can also purchase Celo Dollars from other exchanges as well.
Celo Dollars can be minted or burned at any time to maintain a stable peg to the US dollar.
However, Celo has a fixed supply.
However, unlike Libra, Celo's reserve is backed with other crypto currencies like Bitcoin and Ethereum,
instead of fiat.
It's also important that the reserve doesn't have to be fully collateralized
though the protocol pushes towards full collateralization.
This reserve is adjusted to maintain the supply of cUSD at a $1 peg.
There's also a fee on transactions that get added to the reserve
to support the sustainability of the Celo system.
It is further possible that in the future,
we will see a percent of each block reward get added to the reserve as well.
That simply doesn't exist yet.
There's one more key component though to the Celo ecosystem---
arbitrageurs who help keep the peg.
When the price of cUSD is above $1,
arbitrageurs are expected to purchase CELO and exchange it for cUSD.
Then they sell the cUSD and collect the profit.
This selling pushes the market price of cUSD back down to $1,
and similarly vice versa if the price of cUSD was under $1.
The practice of arbitrage helps sustain the Celo system.
So let's talk about the team next because Celo has a solid team.
And behind every successful project,
there's got to be a group of dedicated people to make that work.
cLabs,
the team that's involved in the development of the Celo platform,
has hired former Capital One head of enterprise risk management, Jai Ramaswamy, for AML practices.
In addition, the Celo founders themselves have a ton of experience.
Marek Olszewski and Rene Reinsberg were previously involved with the machine learning startup Locu from MIT,
which was sold to GoDaddy.
If that's not enough,
EigenTrust inventor and former MIT Media Lab professor, Sep Kamvar, is also a co-founder.
EigenTrust was developed by Kamvar and, in 2002, for Google,
And it was previously used as an important component of the Google PageRank algorithm.
The EigenTrust algorithm is utilized by Celo to measure a user's reputation
similar to the way a credit score measures your personal financial reputation.
With EigenTrust as part of the Celo system,
an account's reputation score is defined by the total number of accounts
who trust an account weighted by the reputation scores.
Celo's blockchain is a PoS (proof-of-stake) network offering users multiple tiers.
Celo is an application that doubles as a light client, full nodes and validators.
Celo Dollars can be sent to anyone using a phone number.
If the person doesn't have the Celo app,
they can still receive funds connected to their phone.
Although to access this value,
recipients will eventually need to download the Celo application
to formally receive their funds.
Celo is attractive because it uses a phone number instead of long strings of letters and numbers
as a typical blockchain address uses similar to what Dash is now doing and Elrond is doing with the herotags.
The following images are from Celo's blog.
When a user creates a wallet,
the mobile number is linked to the wallet address,
and an encrypted cryptographic hash of the phone number is created
then stored on Celo's blockchain.
After you install the Celo Wallet, you will be prompted to enter your mobile phone number.
After confirming, you will be sent a code via SMS to that mobile number.
You will then be asked to input the code into the wallet app,
and the Celo app will sync with your phone number.
The following image is a look inside the Celo app provided by Google Play.
As CELO is a staking cryptocurrency, users can stake CELO to help secure the network
and unlock higher tiers.
Celo uses the Byzantine Fault Tolerance consensus algorithm,
which uses a set of validator nodes to reach agreement on the validity of the transactions on the network.
Now, if you would like to become a validator node for Celo yourself,
it's going to cost you over $20,000 in Celo governance tokens.
However, Celo has said that it is exploring ways to make it more affordable to run a validator node.
Currently, the plan includes a multi-tiered system of validators, nodes and clients.
Celo community has also released a proposal
to attempt to increase the number of validator nodes into the millions.
But at the moment, there are a strict limit of 100 validators supporting the network.
Users that support the network with full validator nodes are given gateway fees for doing so,
enabling transactions to be broadcasted across the network to the light clients and nodes.
On Celo, you can also pay for gas fees in the CELO token,
so bye-bye Ethereum high gas fees for all applications built on the Celo blockchain.
Without getting too technical,
here's a picture of how everything works on the Celo network.
Celo also has its eyes on interoperability,
announcing last November Chorus One was going to build a bridge between Celo and Cosmos,
the king of interoperability blockchains.
So how high do I think Celo can go during this bull run?
With a total of 1 billion Celo and only 97 million in the circulating supply,
there's a good percentage of that that is locked up in at least 100 validator nodes.
And I do believe Celo has the potential to get up to at least 10 times its current price this year,
price prediction of $50 for Celo.
You can find Celo on Coinbase.
You can get to Coinbase by visiting bitboycrypto.com/deals.
Let me know what you think about that. Drop your price predictions down below.
If you like these review videos, make sure to smash up the likes.
That's all I got.
Be blessed.
BitBoy out.