What is Celo and what makes it special? (Part 2 of 2) - Crypto in Plain English - Episode 114 - by cryptohunt.it

What is Celo and what makes it special? (Part 2 of 2)

Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english.

Today, welcome to part two of our two part series on Celo, a blockchain near to our heart as they are investors in cryptohunt.

To recap – Celo tries to solve two problems: Reduce the technical knowledge typically needed to use crypto, and avoid crypto’s strong value fluctuations. And it does all that while being carbon negative.

Last time, we explained how Celo uses your phone number or email to make sending money much easier than is usually the case with crypto.

But what good is that if you have to pay with a currency that gains or loses value every day, like non-stable coins such as Bitcoin do? Imagine getting paid for work one week and the next week your groceries are twice as expensive.

Celo powers a couple of stable coins, currently one tied to the US Dollar, one tied to the Euro, and one tied to Brazil’s Real. One Celo USD is always worth one real US Dollar, for example. Same idea with the Euro and Real varieties.

That allows users to pay for things without having to worry about the fluctuating value of their crypto wallet.

And in case you were wondering, yes there is also CELO itself, the native currency that does fluctuate in value and rewards those who validate the transactions. That means: If the Celo blockchain becomes more popular, the CELO token increases in price too.

And lastly, but important to many of us, Celo offsets more carbon emissions than it causes, making it one of the few carbon negative blockchains. It uses a method of validating transactions that doesn’t need a lot of computing power. For comparison: Bitcoin only processes 2 transactions per ton of CO2, while Celo crunches up to 7 million. And even then, the Celo Foundation is making regular contributions to Project Wren, which plants trees to offset carbon emissions.

Those features have led to CELOs adoption across the world. Even Kickstarter announced in 2021 that they will pivot to a blockchain powered company and build on CELO. It currently ranks in the top 75 blockchains by market cap and has attracted large investments from Andreessen Horowitz, T-Mobile, and Twitter founder Jack Dorsey among many others.

And that’s it on Celo! We hope you enjoyed our two part series!

Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.