What is Celo?
Celo is among the blockchain projects working to make cryptocurrencies available for everyone by offering a simplified payment process. Rather than going for complicated and long strings of letters and numbers as blockchain addresses, Celo helps its users send and receive cryptocurrencies using the mobile phone number.
The Celo has decided to use a mobile phone because there are no landline phones or cables for the internet in some areas of the world, but people who live in those areas have mobile phones in several cases.
Simplified blockchain transactions by Celo
Celo has simplified the user experience by getting rid of any public keys on the side of the user and get them replaced with the mobile phone numbers that most people prefer. They type into a form of address and are, therefore, much easier to remember.
By using the mobile phone numbers as addresses, the Celo team has developed a blockchain with lower resource usage compared to the modern blockchain solutions. This low resource design is the primary key for increasing use in the areas having scarce resources. The decentralized algorithm EigenTrust is one final addition to the Celo platform. This algorithm measure reputation and is quite similar to the way credit score measures financial standing.
Using Celo platform
In order to send Celo dollars, the Celo app is the preferred way, and the platform’s stable coin is not needed. The users can send Celo dollars via WhatsApp if they want, but to receive the Celo dollar, the user must download and install the Celo wallet.
After the wallet is created, the mobile number gets linked to a wallet address, & on the blockchain, the cryptographic hash of the phone number is stored. The process is straightforward, and you can even try it by using the Celo developers wallet.
The Celo team also states that one can associate multiple phone numbers with the same Celo address, which can be quite useful when you change your phone number. At any time, it is possible to add or remove the numbers from the wallet address.
How does Celo work?
Though Celo appears quite simple for the users, it is also technically sound at the backend, just like any competing blockchain project. It is built by using the Go implementation of Ethereum and uses a Proof-of-Stake consensus algorithm.
At present, Celo uses the Byzantine Fault Tolerant consensus algorithm, where a defined set of validator nodes are being used to reach an agreement on the validity of transactions posted on the network. The consensus method can reach an agreement on the transaction validity even if one-third of the nodes are faulty, malicious, or offline.
Though Celo is still relatively new, it has already gained massive adoption in the cryptocurrency community, as around 100 companies support or sponsor the project in one way or the other. Celo is no doubt an overly ambitious project when one thinks of its mission to prosperity for everyone. Its community is large, passionate, and diverse, and with the usage of mobile phones in its design, it has found a way to make cryptocurrencies understandable and approachable.