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A Beginner’s Guide to Celo
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In Brief
Learn about the Celo and how this mobile-first platform is working to make DeFi and crypto more accessible.
Celo is a blockchain-based ecosystem designed to make decentralized financial applications and cryptocurrency payments accessible to anyone with a smartphone. Celo's mobile-first approach and commitment to sustainability offers unique advantages in the Web3 space. In this beginner's guide, we'll explore the origins of Celo, its ecosystem, and the CELO crypto token.
Before You Get Started
Before you explore Celo in more detail, remember that you can buy crypto, including Celo using Trust Wallet.
Trust Wallet lets you manage and interact with 10M+ crypto assets across 100+ blockchains. Download the latest version of Trust Wallet today.
The Origin Story of Celo
Celo was founded in 2017 by Rene Reinsberg and Marek Olszewski, former executives at GoDaddy, along with Sep Kamvar, an MIT professor and Google executive. The project was inspired by the growing number of smartphone users worldwide, which currently stands at 4.88 billion, or 60% of the world’s population. With only 0.5 billion cryptocurrency users, Celo spotted an opportunity to bridge the gap and drive mass adoption of crypto through a mobile-first platform.
In 2018, Celo raised approximately $46.5 million through private and public sales of its native CELO token. Investors who contributed to the project include a16z Crypto, General Catalyst, and Social Capital.
The Celo Ecosystem
Celo is a decentralized protocol that enables cryptocurrency transactions using a mobile phone number-based identity system. The platform supports the transfer of various stablecoins, such as Celo Dollars (cUSD), from one mobile user to another anywhere in the world. Celo also enables the development of decentralized applications (dApps) on its proprietary blockchain.
The Celo ecosystem is diverse and rapidly expanding, with projects ranging from decentralized finance (DeFi) applications to social change initiatives. Some key projects within the Celo ecosystem include:
Mento protocol: A stablecoin platform that helps stabilize the value of Celo's native stablecoins.
Ubeswap: A decentralized exchange (DEX) that enables token swaps and liquidity provision on the Celo network.
ImpactMarket: A social development project focused on providing unconditional basic income to communities in need through blockchain technology.
The CELO Crypto Token
The native cryptocurrency of the Celo network is CELO. It serves multiple purposes within the ecosystem, including staking, governance, and transaction fees. CELO crypto holders can participate in on-chain governance, influencing the development and upgrades of the protocol.
To acquire and store CELO tokens, users can purchase them through exchanges, token sales, or as rewards for participating in the network. CELO tokens can be securely stored in a Celo wallet, which also supports direct token purchases.
Staking CELO tokens is straightforward and can be done directly from the Celo Wallet. By staking their tokens, users help secure the network and earn rewards, enhancing their participation in the ecosystem.
What Sets Celo Apart:
Celo stands out from other blockchains with several key features:
Mobile-first approach: Celo's architecture is optimized for mobile devices, enabling over 4.5 billion smartphone users worldwide to access decentralized financial services easily. This focus on mobile usability is a significant differentiator from other blockchains that prioritize desktop environments.
Carbon-negative blockchain: Celo is one of the few carbon-negative blockchains, actively working to offset more CO2 than it produces. This commitment to sustainability is integral to its mission and operations.
Multiple currency support: Celo allows the use of various currencies, including stablecoins like cUSD and USDT, making transactions more flexible and accessible for users globally.
Proof-of-Stake (PoS) consensus: Celo uses a PoS consensus mechanism, which is more energy-efficient than traditional Proof-of-Work systems. Validators are selected based on the amount of CELO tokens they hold and stake, ensuring network security and integrity.
Getting Started with Celo
To interact with the Celo blockchain, users need a Celo wallet. The Celo Wallet app can be downloaded, and a new account can be created or an existing one imported. Once set up, you can start transacting on the network using your crypto wallet.
CELO tokens can be acquired through exchanges, token sales, or as rewards for participating in the network. Users can store their tokens securely in their Celo wallet, which also supports direct token purchases.
How to Swap USDT on the BNB Smart Chain to USDT on the Celo chain
Select “Swap” from the Trust Wallet home screen.
Ensure BNB Smart Chain is selected in the the “From” network field, and choose USDT as your token
Ensure Celo is selected in the “To” network field, and choose USDT as your token.
Enter the amount of USDT you would like to swap.
Select “Continue” and complete the remaining steps.
Disclaimer: Content is for informational purposes and not investment advice. Web3 and crypto come with risk. Please do your own research with respect to interacting with any Web3 applications or crypto assets. View our terms of service.
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Note: Any cited numbers, figures, or illustrations are reported at the time of writing, and are subject to change.