Nansen Research: How Celo Bringing Blockchain Into The Mainstream

In the history of Web1.0 and Web2.0, hundreds of companies competed for control of data exchange. Only those who succeed in transforming technology into consumer electronics are the winners.

It has to do with the Internet of Things, but crypto today still depends on a similar exchange. While blockchain technology can transform assets in seconds without the trust of a third party, it lacks the user experience that makes it meaningful. In the eyes of many, volatility keeps its market priced above the average exchange rate.

On the other hand, other payment methods like Apple Pay, PayPal or Venmo are now very user-friendly and can guarantee price security, but include middlemen who not only delay exchange rates but also generate income. . In some parts of the world, the self-employed are excluded from the global economy. The first is due to the lack of bank accounts or the weakness of local financial institutions.

Combining the benefits of blockchain technology with user-friendly payment methods can always answer the ultimate question. Now and so online? This is the purpose of the Celo blockchain.

What is the cello?

Celo was launched in 2017 and is a top-level blockchain powered by a16z. Like any other blockchain, it is an EVM compatible chain that supports industry and energy efficiency. The decentralized application can provide financial support when using blockchain technology. Celo's dApps, for example, include Ubeswap (the first exchange for mobile phones), PoolTogether (cryptocurrency-based payment), Moola (capital wallet), and SushiSwap.

The recognition of a company depends on the quality of the agreement. Unlike the certification authority, Stake Certification selects validators based on the number of local tokens on the blockchain. Since validators are selected on this basis, multiple computers are not required. There is no competition from miners to push oil prices outrageously. The time required to identify the change is also shorter because one does not have to invest as much as one can implement PoS based blockchains such as Solana (50,000 TPS) and Polkadot (1,000 TPS). . In comparison, Ethereum only needs 16 meetings.

To understand the differences between Layer 1 and Layer 2 blockchains and the current blockchain environment, check out the announcement here.

Fast market and fuel prices

As mentioned above, proof of stake confirmation can complete the quick trade and Celo's low oil price equals 5 seconds and $ 0.00004 as a result. Over time, Celo's daily oil prices will continue to be lower than Ethereum's as shown below. for

All fuel is billed daily at Celo VS ETH over time

Celo completes delivery of 200 TPS while handling higher fuel costs than Ethereum's 16 TPS, but 200 TPS is still lower than blockchains like Solana. Co-founder Marek Olszewski said the team will continue to work, which will make Selo the fastest EVM channel by the end of 2022.

Additionally, network nodes are limited to 163 nodes, which makes network connectivity more common than blockchains like Ethereum. Since its inception, all exchanges and special locations have remained small. In fact, it has completed 70.6 million trades and Solana has completed a total of 44 billion trades.

However, given Celo's market problems from the start, organic growth can be seen, especially at the end of July. Celo saw a 10% increase in the total Ethereum market to 45% of the Ethereum market, indicating growth in adoption. for

All of Celo's modern products compare to ETH over time

Additionally, according to data from Coinstack and DeFiLama, Celo is now the fourth growing blockchain in DeFi. Since August 1, the total value of locks has increased 157% from $ 339 million to $ 870 million, overtaking Terra, Ethereum, BSC, HECO and Polygon, holding more than $ 800 million in total. . Value (TVL). Let's see why the cello is getting more attention.

Celo is unique in that 1) it is a global payments platform that can be used by all cell phone users, and 2) it uses fixed price tokens connected to fiat to reduce volatility. Below we try to simplify the working principle of these two machines.

Mobile wallets are universal

About 2 billion people today do not have a bank account. Celo allows cell phone users to use their cell phone number as a public key instead of using a long cord. Your phone number becomes a public address that your customers can see. You can connect your phone number to your wallet before you receive the SMS verification code.

This method does not endanger the user's privacy because only the hash number of the phone number (the hash value and the pseudo-random source code) is stored in the shared file, not the number itself. .

Celo also uses an algorithm called EigenTrust to calculate reputation numbers. It's judged by the total number of other phones that trust it and weighted by all reputable scores, which is especially useful when dealing with non-residents on your list.

stable price

There are two main types of crypto assets: Celo and Celo Dollar. Celo (CELO) is the contractual asset of the contract. An electronic system that allows users to participate in network deals (by proof of stakes), pay blockchain exchange rates, and vote for deductions. The Celo Dollar (cUSD) is a fixed currency denominated in US dollars.

Celo's security is based on two different types of security. The first is represented by a fixed exchange rate linked to fiat currencies such as Celo Dollar (cUSD) and Celo Euro (cEUR). To provide additional security, Celo received a variety of reserve cryptocurrency baskets to support pegging. The second mechanism is Mento, a stable algorithm for capturing arbitration time. When the value of the cUSD exceeds 1 US dollar, the arbiter buys CELO, converts it to cUSD, and then sells the cUSD for cash. Selling cUSD reduces the market value to $ 1. Likewise, if the value of cUSD is less than $ 1, the arbitrage trader buys the tokens and then converts them to CELO to benefit from the different. When you buy cUSD, the cost goes up to $ 1.

Explore Celo with Nanse

Dapp Panorama

Celo currently has around 90 distributed software. This software distribution is either fully implemented or will be implemented soon, particularly with regard to the Celo Camp (Virtual Accelerator) and events related to Celo.

This decentralized software can be divided into three main categories: budgets that manage Celo's assets, decentralized financially decentralized software, and decentralized software that includes “interventions”.

As the nansen figure below shows, within each category, decentralized software is more mature than the rest, with Moola and Ubeswap, for example, accounting for 40% of Celo's total engine cost. The wheel appears to represent when a smart contract organization completes the rules.

Celo top location information (inserted by the number of events in the engine)

Moola is Celo's mobile lending platform, a mobile-enabled Ubeswap decentralized exchange for Uniswap. Celo's other expanding decentralized software market shares include the main platform of Celo platform, Mento, the decentralized exchange of the AMM (Automatic Market Maker) brand, and Poof.cash, the private contract. Deposits and withdrawals are possible. When someone else doesn't know your account balance.

It is especially interesting to note that large financial management processes such as SushiSwap outperform small Celo cellphones still having independent software (Moola, Ubeswap, etc.) on the engine design. This shows that people are paying special attention to mobile cryptocurrency services. . . . In fact, SushiSwap only accounts for 1.7% of all motor accidents.

Some of these unreliable financial management systems are designed specifically to help in special situations. For example, projects like Doni can help communities and provide small loans.

The funds for this decentralized software are only managed through wallets such as Valora, Celo Wallet, Terminal, Metamask, Abra and Opera. Some are native, like Valora is Celo, while others are browser extension wallets similar to Metamask (like Inflibridge).

commitment to work

We have also seen sites appear in Celo creating contracts between Ethereum and Polygon (PoolTogether, SushiSwap, etc.).

Real Celo Affair

For the first time, it is especially important to comply with the most sophisticated contracts developed by Celo, including token sales, betting and cash pools, and NFT collections.

Celo opens a new contract (in decision on investment capital)

For example, you can identify the most popular lakes. The chart above shows that the Mobius cUSD-DAI liquidity pool has most contracts and deposits in the last 7 days.

Mobius is the exchange bridge built on top of Celo, which means users can transfer money from other channels to Celo and exchange them for assets at equal cost, reducing the risk of permanent disruption. It also includes partners who are dissatisfied with the return rate.

The X Nansen tool allows you to determine if a special operating pool is capable of continuing your smart investment. For those unfamiliar with the Nansen label, the Directory of Experts refers to a cryptocurrency organization with knowledge or experience in trading or investing.

Therefore

Today we are at the forefront of the impact on cryptocurrencies. When blockchain technology has proven itself to many parties, it is not well known to users to turn it into values. Recent advancements such as Web 1.0 and Web 2.0 have shown that companies that simplify technology while performing well can achieve global adoption. The smart contracts that most people use for financial services have not been a problem for most of them for decades, just as most Internet users know little or nothing about them. In this regard, Celo understands it well by considering in its mobile first approach and the mechanisms of stabilization of value linked to volatility. for

Celo is undoubtedly one of the pioneering projects interested in accelerating DeFi's reputation and attracting more people to the cryptocurrency space. It will be interesting to pay attention to the evolution of the ecosystem and the next project. for