Off-chain scaling platforms have become crucial for the development of the cryptosphere as they enable a higher transaction throughput and lower transaction costs. They are also known as Layer 2 protocols.
In this edition of Spotlight, we will discuss the Celer Network, one such scaling platform that aims to achieve over a billion transactions per second at low costs. Its native token CELER has attracted huge investor interest in a very short period and has gained by almost 10 times in the crypto rally of 2021.
Let’s study the coin’s fundamentals and check how it plays a key role in developing the DeFi ecosystem.
- Coin Rank: #178
- Coin Marketcap (as of 21st March 2022): $266 million
- Coin Economics: Fixed
- Coin Total Supply: 10 billion CELR
- Coin Current Supply: 6.58 billion CELR (66% of total supply)
Technical Analysis: CELR Price Analysis
On the daily price chart of the CELR/USD pair, the chart formation looks extremely weak. Earlier in January 2022, there was a death cross formation—the pattern that appears when the short-term 50 EMA crosses below the long-term 200 EMA. Being a sell signal, the death cross triggered a major sell-off and has breached every major support line.
To reverse the bearish price momentum, CELR needs to break above the 50 EMA and 200 EMA lines in the short to medium term.
A Brief About the Celer Network
You will find many scaling platforms in the crypto market, but most focus on scaling some specific blockchain platform or the other. For example, Polygon is an Ethereum scaling platform, and similarly, Lightning Network solves Bitcoin’s scalability problems. This is where Celer Network stands out.
Launched in the Q3 of 2018, the Network improves the scalability of multiple public blockchains and not just a specific one. The functionality of Celer Network extends to Avalanche, Ethereum, Polkadot, Binance Smart Chain, DeFi, and the GameFi ecosystem and allows interoperability between multiple blockchain platforms.
How does the network function?
Unlike other scaling platforms, Celer uses different layers for specific tasks to reduce the bottlenecks. The Celer Network Architecture called Cstack is divided into three different layers— cChannel, cRoute, and cOS—each having a specific task to perform.
cChannel is the bottom-most layer. It supports off-chain smart contracts with a minimal on-chain footprint. This enables the functioning of gaming platforms, DeFi applications, and other high throughput applications.
cRoute is the mid-layer of the network responsible for driving speed and the volume of transactions per second, by efficiently transferring programmable value to other off-chain scaling networks. It can achieve a 15X higher transaction throughput compared to Lightning Network and Raiden.
cOS is an off-chain dApps development platform with easy API and SDK. It handles all the crucial aspects of dApps development, including storage, operations, tracking, and so on.
CELR is an ERC-20 token with a total fixed supply of 10 billion units, and a circulating supply of 6.52 billion. While it is the primary platform currency, it can be used for other things on the Network that are a part of the cEconomy, enabling users to enjoy various incentives on the platform. Specifically, CELR can be used on:
- State Guardian Network (SGN), which ensures the security and availability of off-chain states (elements). While users can pay fees in CELR for this protection, token holders can stake their coins to provide security and earn service fees.
- Liquidity Backing Auction (LiBA), which allows off-chain service providers to request liquidity through crowdlending from users.
- Proof-of-Liquidity Commitment, a virtual mining process that provides liquidity to an off-chain ecosystem. Users staking their CELR tokens for maintaining liquidity and stability are later rewarded with more of the same.
What Makes the Celer Network Special?
The following feature makes Celer Network unique from other scaling platforms:
- Multi-blockchain support, including other off-chain platforms.
- Supports off-chain smart contracts.
- Only scaling platform to provide state security, connectivity, dispute resolution, and abundant liquidity for off-chain scaling platforms.
- The first and only scaling platform available on Android and iOS.
Celer Network Future Growth Potential
Founded by Computer Science PhDs from MIT, Princeton, UC Berkeley, and UIUC, the Celer Network is known to have a strong development team. It is witnessing strong growth and adoption. In recent months, cBridge alone has reached over $2 billion in transaction volume.
With the growth of the DeFi and GameFi ecosystem, the Celer Network will be benefited directly and has a lot of potentials to grow in value over the long term.
Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.
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