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Celer Network (CELR)

$ 0.03887692 (1 CELR) 1.91%
Celer Network is promoted as an advanced layer-2 scaling platform for faster, simpler and more secure off-chain payment transactions and smart contract execution.
Market Cap Volume 24h Circulating Supply Maximum Supply
$ 217,757,628
5,601,205,754 CELR
$ 23,384,418
601,498,725 CELR
5,601,205,665 CELR 10,000,000,000 CELR

What is Celer Network?

Launched in March 2019 via Binance Launchpad, the Celer Network and its native CELR token hope to capture the hearts and minds of crypto enthusiasts with the promise of introducing interactivity, security and low fees to the world of decentralized applications (dApps) running on the blockchain. With that in mind, its developers, some of whom include the alumni of MIT, Princeton and UC Berkeley, went on to design an off-chain scaling platform serving as the hotbed for fast development, deployment and operation of decentralized applications characterized by high accessibility and scalability. With Celer, all of the activities related to dApps should become manageable with better scaling capabilities, while the smart contracts deployed on it should come with zero-fee transactions for the users.

Celer’s crypto economy aims to drive the future “cEconomy” which functions as the off-chain incentive structure of the Network. The goal is to have a virtual ecosystem running on innovations and incentives and being based on the experiences the Celer developers gathered while working for the industry giants such as Google, Amazon, Cisco and HP. Celer is also big on partnerships, particularly the one with Binance which accounted for the initial 97% of CELR trading volume in March 2019. The network raised some USD 4 million in 17 minutes during the sale on the Launchpad.

What Is Celer Trying to Achieve?

Celer Network was created in response to what its developers saw as the most pressing issues found in the contemporary crypto world:

  • The Celer Network aims to improve the scalability of modern-day blockchains in order to broaden the scope of their use cases. Blockchain technology is described by the Celer developers as lagging behind the competing non-blockchain solutions when it comes to the transfer of value, even in the financial segment alone. This creates a bottleneck in its economic use, based on slow transactions which often come with rather high price tags. With the existing on-chain systems, a single node needs to processes each transaction, with the system being as fast as the processing capacity of its slowest node. Even the constant improvements to the on-chain consensus models force the developers and users to accept tough compromises in other tech segments (security, decentralization). The solution offered by Celer is leaving the on-chain consensus model only as a last resort option, while giving preference to off-chain scaling techniques. These are based on scalable distributed systems with mutually independent operations on diverse nodes. Celer’s off-chain scaling should allow the parties to execute contracts locally, i.e. among themselves rather than on the global blockchain.
  • Celer wants to stimulate the value exchange among the parties on its network by pairing high performance with an Internet-like functionality. The Celer team promises 20,000X reduction on transaction latency, which is supposed to finally deliver on the blockchain’s promise of providing a viable alternative to the dominant global payment platforms. The throughput of the Network is supposed to increase in an almost linear manner as the number of joined nodes grows. Theoretically, even billions of transactions per second should be an achievable goal, as long as the number of nodes and applications on the off-chain platform remains high enough. In the vision of the Celer developers, their solution should ultimately become a decentralized ecosystem consisting of users, computers, mobile and IoT devices, all empowered to engage in fast and efficient exchange of value and data in an Internet-like system.
  • Off-chain scaling on the Celer platform should not only help the transactions scale better, but make them both more secure and truly trust-free. Off-chain scaling is billed as not a mere optimization of the operation of the Celer Network. Instead, it is supposed to become a technological avenue which should allow for the deployment of dApps without compromises on their security and decentralization. The users will be required to keep a fraud-proof off-chain replicated state machine, limiting the use of on-chain consensus to the rare situations such as when the parties are in disagreement on a state. The majority of transactions will be processed only by the participants involved in them. This is supposed to provide grounds for offering better privacy to the users since not all transactions will be treated as public in each situation, as it is the case with the on-chain solutions.

What Is CelerX?

Creating an efficient payment solution is not the only goal of the Celer team. Their plan is to ultimately turn the platform’s ecosystem into a fertile ground for innovations involving all sorts of off-chain transactions. The Celer team describes the competing off-chain payment solutions as lacking in the department of “cryptoeconomics”, which it aims to solve by offering a full, user-focused product on top of its platform – CelerX. CelerX functions as an app providing an interface to transactions taking place on the network, while moonlighting as the blockchain-based wallet with a few tricks up its sleeve:

  • CelerX should support the feeless and instantaneous transfer of funds with the help of its Celer Pay solution. Based on Celer’s off-chain payment functionality, the platform promises the execution of even the micropayments to all users with zero fees. Tokens deposited with the help of the Celer Pay are not controlled by Celer, which means that users should retain complete control over their funds in any given situation. In addition, both the sender and the receiver need to be online in order for the payment to be effected properly.
  • In addition to payment, CelerX should offer access to an array of interactive decentralized apps built on top of the Celer SDK by the platform’s native community. This comes with the focus on interactivity and the speed of the apps’ execution. Prior to their deployment, Celer Network aims to provide adequate resources for the streamlined development, which is to be helped by the fact that the Celer SDK is available for iOS, Android and Web platforms. Apps in CelerX do not come with transaction fees and they are supposed to offer a faster user experience compared with the dApps built on the regular blockchain.
  • CelerX will give its users access to interactive games built on top of Celer, with the promised “millisecond” latency. Some games will be the subject of organized competitions allowing the users to earn tokens.
  • The use of the Celer Pay and apps may sometimes entail the interaction between the Celer’s layer-2 scaling network and the underlying layer-1 blockchain. This includes placing deposits and withdrawing funds from Celer or resolving disputes. These operations can incur the transaction fees, just like with other on-chain transactions may (similar to the Ethereum’s gas fees). Celer’s Reserved Fee concept is supposed to help the users track and maintain the sufficient on-chain balance for these situations.

How Does the Celer’s cStack Technology Work?

The Celer Network’s developers designed a layered architecture designated as cStack, with the goal to provide a clear interface to the platform’s technology, simplify the system design and optimize maintenance. At the same time, the cStack should keep an open door for easier upgrading of each of its building blocks which consist of:

  • cOS is the development framework for applications supporting off-chain operations. This is achieved by having it provide common design templates as well as handle operation, storage, disputes and tracking of off-chain states. Based on this, the cOS framework is supposed to make it easier to develop and deploy off-chain dApps which can be more demanding for handling compared to their on-chain counterparts.
  • cRoute is a component dedicated to ensuring the optimization of off-chain value transfer operations. This is achieved by implementing the distribution of the congestion pressure and routing based on gradients. Routing of value transfers is described as essential in the running of a decentralized off-chain platform such as the Celer Network.
  • cChannel is a generalized state channel and a sidechain suite supporting fast generic off-chain transactions and state transitions. As such, it acts as the technological foundation of the platform’s off-chain scaling functions.

What Is the Celer’s cEconomy Model?

The Celer Network’s design lies at the heart of the cryptoeconomic model defined as the cEconomy. This type of organization is supposed to ensure that the Network’s ecosystem remains readily available and functional, together with the maintaining of healthy levels of liquidity. The model is based on the interaction of several components, including:

  • Proof of Liquidity Commitment (PoLC). This model is described as the “virtual mining process” tasked with securing liquidity for the platform’s off-chain ecosystem. The users can lock/commit their idle liquidity (such as ETH) to the Collateral Commitment Contract for a time and receive CELR as a reward.
  • Liquidity Backing Auction (LiBA). This system helps the off-chain service providers use the crowd lending model to provide liquidity. The lender’s priority status is determined based on the amount of solicited liquidity, interest rate or the size of the stake in the CELR tokens, including the earlier record of contributing to the Celer Network.
  • State Guardian Network (SGN). This specialized sidechain protects the states while the users are offline. The users tasked with guarding the states need to stake CELR token with the SGN to become eligible for the appointment as guardians.

CELR Token Availability

All of the above interactions serve to illustrate the role of the CELR token which plays the main role in keeping the Celer’s liquidity pool stable and acting as a means of payment for the service and transaction fees.

The total supply of the token itself is capped at 10 billion units, with 2.7 of them being in circulation as of June 2019. At the same time, the coin’s market cap stood at USD 48 million. The token is available for trade on Binance and other cryptocurrency exchanges.