Celo CGLD listed on Binance
After the announcement that Celo will be listed on Binance, few days ago, the price exploded in a huge up swing, taking investors by the storm.
At the time of this writing, Celo is listed on Binance for about an hour and the price is at $2.97 and rising. It’s interesting to see where this will lead to in the future of this coin.
What is Celo, and how does it aim to change the world of payments?
Celo is a platform that allows you to send and receive money on your smartphone, with very low fees and very short times. In this article I will talk about Celo and how it can have a profound impact on the way we exchange money.
Want to jump straight to the part on how to have CGLD for free? Here’s the link to that!
From this point of view, it is not particularly different or new compared to any PoS-based token, such as Ethereum.
There are 2 tokens: cUSD and CELO (or CGLD depending on whether you use the old or new name). cUSD is a stablecoin based on the US dollar, while CELO/CGLD is the token that allows staking and has fixed offer and variable value. Then, you can stake CELO to get a return, and make transactions faster.
The particular thing about Celo, though, is that you can use phone numbers as addresses for transferring money. This allows anyone to send and receive cUSD only by knowing and communicating their phone number. We will reason about the novelty of this factor, and the potential risks involved.
The fundamental idea of Valora, Celo’s main app, is to allow the transfer of money quickly and easily, from smartphone to smartphone. This shows that the fundamental idea of Celo is to become attractive for those who have no affinity with the whole crypto world, made up of wallets, addresses, hashes and gases: just download the app and send or receive.
So, in this sense, Celo is a new PayPal based on cryptocurrencies. This allows it to be intuitive, but using crypto fees, and an additional level of decentralization.
There are some positive features, and the biggest is exactly ease of use. This has the potential to be a big plus for the growth of this platform – and we know, speaking of payments, how adoption is absolutely crucial.
It may also be able to get the attention of an additional percentage of the general public to a practical application of cryptocurrencies.
Phone numbers to IDs problem
First, the mobile number is often linked to an ID, and as a result all transfers would be easily and immediately traceable. Also, as the developers say in their whitepaper, knowing a person’s mobile number would be possible to see all their transactions. For anyone.
This is obviously a huge problem, which they only mention and which they hypothesize to solve with a kind of number encryption; operation that would lead to practical problems for the operation of the blockchain, and it would still always be possible for a hacker to overcome that encryption and view the transactions associated with the numbers.
Experts who have been following the blockchain world for years, think that the future of payments is anonymity. Not so much because people have something to hide, but because, quite simply, we are tired of big business knowing everything about us.
Think about every time you make a payment with PayPal: they know exactly what you’re interested in buying, even things you may be ashamed of.
In this article I tried to explain what Celo is, and how his two tokens allow you to send money from mobile to mobile using the Valora app. I consider Celo an interesting project, even if his strength is also likely to be his Achilles heel. Sending money knowing only the recipient’s mobile number, in fact, allows the process to be extremely simple and fast, likewise, potentially puts privacy at risk.
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