On a blog post uploaded by Celo on June the 22nd, the company informs about its latest updates. First of all, Celo aims to remove the barriers for large-scale use of cryptocurrencies as a means of payment, which is a key topic in the industry.
The team has been working in order to build products for financial empowerment. Part of the innovation behind Celo is related to the last 20 years starting from researching different peer-to-peer reputation systems to developing decentralized identity prototypes using semantic web technologies.
Problems Celo Seeks To Solve
There are populations around the world that do not have access to basic financial services. We are talking about some African countries, or islands like Bermuda where banking practices are not profitable.
Indeed, according to to reports from the World Bank Group, over 1.7 billion people around the world are still unbanked. Moreover, there are individuals (1.1 billion) that do not have officially recognized IDs.
But it is important to mark that an important number of the unbanked population has access to a mobile phone. This may be a key factor to help them be financially included. Current systems charge over 10% of fees every time these individuals decide to send a transaction. Moreover, some of these systems do not allow them to preform cross-border payments.
The Celo Blockchain Banking Rewards & Crypto Payments Solution
Celo is working with the intention to remove barriers for large-scale adoption of virtual currencies as a means of payment. All of the parties interested can participate in the Celo network and earn Celo currency. Even a normal Android smartphone can participate. With a novel address-based encryption algorithm, Celo allows people to send and receive money in an easy way.
Additionally, the company uses a cryptocurrency that is pegged to the US dollar in order to reduce volatility.
In order to work, Celo maps phone numbers to wallet addresses using a decentralized address-based encryption algorithm. Those mobile participants that secure the network and maintain the system in a healthy way are able to earn rewards for their work.
Celo is working in order to build a global system that allows everyone to participate. Behind Celo there is a team of engineers, entrepreneurs, designers and experts in different areas. At the moment there are several academics and individuals that are supporting the network.
In addition to it, they are announcing an initial funding round of $6.5 million dollars by Andreessen Horowitz, General Catalyst, Polychain Capital, Coinbase, Reid Hoffman, Jack Dorsey and many others.
If you want to be part of the team, you can apply on their website.