The Binance Launchpad is gearing up to launch a third ICO, the Celer Network token. This follows the launch of BitTorrent and Fetch.ai ICOs that were highly successful. The Celer token sale set for March 19th aims to raise $34 million. Already, $30 million has been raised privately through seed and private sales. Ahead of the ICO launch, Celer has released CelerX testnet applications that demonstrate the instant transaction process on the network.
Celer is an exciting project that aims to promote fast, easy and secure off chain transactions for payments and off-chain smart contracts. With the network, the blockchain seeks to achieve internet level scalability through innovations in off-chain scaling techniques. Generally, Celer’s goal is to spur mass adoption for blockchain by offering a smooth experience driven by layer-2 scalability technology.
How Does The Celer Network Work?
The Celer Network is technical in nature. The network deploys a layered architecture to enhance scalability and stability. With more scalable blockchain applications, it will not take long until we witness mass adoption. In short, the network seeks to support the transformation of dApp states. It has the potential of shifting from the traditional concept of simple payments while offering additional new features at the same time.
From a theoretical perspective, layer-2 scaling is superior because it permits the network to process minimal transactions off the blockchain. The transactions are then grouped into a single transaction that is later rearranged on-chain. Through this process, the transaction bottleneck is reduced on the main chain while increasing the operational space of the entire system.
Celer’s network architecture is called Cstack with four layers, namely cRoute, cOS, cChannel, and cApps. cRoute deploys the distributed balanced routing system to move payment traffic in a decentralized and trust-free environment. According to Celer whitepaper, cRoute can hit 15x throughput compared to Raiden and the Lightning Network. For cOS, it takes care of operations, storage, off chain disputes and tracking. On the other hand, cChannel offers liquidity while enhancing instant state transitions. We have the eChannel layer which enables gaming applications, exchanges, and other throughput apps to run on the Celer Network. Lastly, cApps is the network’s application ecosystem set for scalability and privacy-preserving.
Who Is Behind The Celer Network
The Celer Network is a product of a group of developers with a rich history. The team is highly experienced with a reputable track record alongside key academic accomplishments. Here are some of the team members.
Mo Dongm. He is the co-founder of Celer. Previously, he worked as the product manager at Veriflow. He applies algorithmic game theory to protocol design.
Junda Liu. He is another Celer co-founder with a Ph.D. from UC Berkeley. He worked at Google building its data center-networking infrastructure.
Xiaozhou Li, He holds a Ph.D. from Princeton University. He has published works in distributed systems, networking, storage, and data management.
Distribution of the CELR Token
The CELR token is an ER20 token set up on the Ethereum blockchain. The token which is the native Celer Network token is set to be sold during the ICO. The Celer Network has outlined how the token will be distributed. The total supply of the token has been capped at 10 billion where 6% will be available for sale. At the moment, investors willing to buy the tokens will only buy CELR worth $1, 500 on the maximum. Each CELR token will be sold at $0.0065 and investors can purchase it 15 days after the ICO has been rolled out.
The seed token sale will stand at 11.5% of the total supply. Another 15.5% will go to the private sale of the tokens. 6% has been dedicated for the launchpad token sale. The team will buy 18.3% of the total token supply while their advisors have been allocated 1.7%. The Celer Network Foundation tokens comprise 17% of the total supply. On the other hand, marketing and ecosystem tokens make up of 5%. Lastly, the mining rewards take a lion share of 25%.
Use Cases of Celer Network
The Celer Network has three main use cases as highlighted below.
Proof of liquidity (PoLC). This is a virtual mining model that offers liquidity for the off-chain ecosystem. In this case, users can earn extra CELR tokens by simply locking up CELR tokens.
We also have the Liquidity Backing Auction (LiBA). LiBA permits off chain service providers to inquire about liquidity via crowdlending. This process gives room for negotiating interest rates. Lenders are exposed to a ranking model that is based on a happiness score which is determined by factors like interest rate, amount of provisioned liquidity and the amount of CELR staked. With high CELR staked, users will be given a higher priority to provide liquidity to off chain service providers.
State Guardian Network (SGN). This unique feature allows any user to submit their state prior to going offline to have it protected for a period of time. All users will pay a fee for this particular protection. CELR token holders can stake their tokens to earn service fees for offering protection.
Celer’s Value Proposition For Users and Developers
The Celer Network caters for both developers and users. Both parties will interact with unique features on the network. For users, Celer offers instant interaction powered by a more superior off chain operating network. Celer has the ability to upgrade slow dApps on the blockchain to speeds of 100000X faster. This advancement enables users to use different dApps instantly.
Users of the network will also have exposure to new apps on a regular basis. The apps will have the ability to power almost every aspect of the digital world from games to payments.
Furthermore, users of the network will spend less while at the same time earning more. The Celer network has the ability to initiate small payments for free. This means that merchants on the network will earn more due to reduced costs.
On the other hand, developers on the network will access a platform compatible with various operating systems. The Celer SDK is available on iOS, Android and the web, meaning that developers will have it easy while coming up with new apps. There is no need for learning new smart contract language.
Lastly, developers on the network will be able to monetize their apps with ease. Monetization has been an elusive part with dApps, however, Celer application developers have an opportunity to host a full node to be part of the decentralized Celer Network and earn revenue through the application’s value flow.
The strength of The Celer Network
With the ongoing cryptocurrency bear market, the Binance Launchpad seems to be the ideal platform for conducting token sales. The BitTorrent (10X in ATH) and Fetch AI (5X in ATH) were launched on the platform and the outcome was positive. With Celer’s choice of the Binance Launchpad, we should expect positive results too.
The Celer Network has zero chances of becoming obsolete. The network can work with any blockchain, minimizing chances of obsoleteness.
The Celer team has also signed key and strategic partnerships with various partners. These partnerships enhance trust in the network alongside building the user base. Some of the partners include; Pantera, DHVC, FBG Capital, Fenbushi Capital, 500 Startups, NGC, Waves among other18s.
The Celer team has a rich history. The entire team has a reputation for turning theoretical aspects into real-world functional solutions. This capability helps in fostering trust and confidence in the network. The team always deliver on their ambitions.
The Weakness of the Celer Network
The Celer Network boasts of a great team of developers. However, the network has not put much effort into building a user community. This weakness might hamper the network’s mass adoption. The team needs to put more efforts into building a user base through additional expertise and resources. There is a need of having a balance between the developer and user community.
The Celer Network is a young and exciting project with a bright future. Whether or not the network will make an impact remains to be seen. However, the team still has some shortcomings especially in terms of building a user community. Additionally, the developers should brace themselves for stiff competition from similar projects.
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