Celo

Written by Edward Gonzales

April 15, 2021

When you think about cryptocurrency, what is the first thing that comes to mind? Well, the answer to that question will vary greatly from person to person. Some people might tell you what problems cryptocurrency solve. For most people, there are two major problems when it comes to cryptocurrency that will make mainstream adoption difficult. The first problem is volatility. The second problem that prevents people from using digital currencies for everyday transactions is the onboarding process. Celo aims to solve both of these problems. 

The issue of volatility is one that we have heard a thousand times before. “How can I use crypto for everyday transactions when it’s so volatile?” Is a question that is often asked. This is a great question. As a consumer, when we spend money we want to pay exactly how much is owed. You wouldn’t typically overpay for your groceries or for your rent would you? When you send, for example, Bitcoin to someone, by the time the recipient receives the coin it will have changed in value. The consumer may have overpaid for their product because of this. As a merchant, they could lose out on the profitably of their sales if they are being paid in coins that depreciate by the time the transaction is confirmed. To combat this, stable coins were developed. A stable coin is one that does not fluctuate as wildly as other cryptocurrencies. In fact, a stable coin will do its best to hold a stable value. Different stable coins will do this by different means. Celo is offering a stable coin to pay for goods and services using blockchain technology. 

If you are already a user, trader, or investor of cryptocurrency then you have already gone through the onboarding process. Getting into cryptocurrency can be quite difficult. If you don’t have the proper guidance, buying cryptocurrency can be difficult and even scary to some. When the concept of a “virtual wallet” is introduced to someone in the form of a bunch of random letters and numbers it can be quite deterring. As humans we are conditioned to want things to be short and simple, especially if it comes to obtaining our money. Most people won’t want to go through the process of registering a new crypto address to receive a digital currency. Celo aims to resolve this issue by implementing an adaption introducing the transfer of cryptocurrency assets by cell phone number. Being able to send and receive cryptocurrency by phone number is going to make things much simpler for the receiver if they have no experience in digital assets. 

Celo uses an app called “Valora” to send and receive currency. The sender can input the receivers phone number and alert will be sent to that number. It will provide a link with simple instructions to get started with Valora in order to access the coins. Some people will see this as a great advancement for widespread adoption of cryptocurrency. Others may have more questions regarding the coin or its resolve. You can visit here to learn more about the Celo project. If you’re new to cryptocurrency and want some general information please refer to our cryptopedia or our available courses

No matter what your standpoint on cryptocurrency is,you can not argue that it is not gaining adoption. It is highly suggested to learn as much as you can in order to give yourself the best advantage over the markets. This publication is strictly for informational purposes and is not a buy command. 

By viewing any material or using the information within this publication you understand that this is general education material and you can not hold any person or entity responsible for loss or damages resulting from the content or general advice provided here. Trading cryptocurrency has potential rewards, but also potential risks. You must be aware of the risks and be willing to accept them in order to invest in the markets. Only trade with funds you can afford to lose. This publication is neither a solicitation nor an offer to buy/sell cryptocurrency or other financial assets. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in any material on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.

Written by Edward Gonzales © Crypto University 2021

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