Celer is a layer-2 platform built along with the objectives of operating across many top decentralized finance (DeFi) networks. Celer uses technology by means of state channels to facilitate blockchain interoperability at low costs and high speeds. The functionality of applications on Celer extends to Ethereum, Polkadot, and Binance Smart Chain while also attracting users in the gaming space.
What advantages does being layer-2 bring for Celer?
Layer-2 platforms are scaling platforms that add to an existing layer-1 blockchain in Bitcoin or Ethereum. Without having to make changes to the base level, layer-2 platforms focus on off-chain interactions through smart contracts. The core objective of layer-2 and Celer is to promote productivity and efficiency on existing networks.
How is Celer useful?
There is a rapidly growing congestion in layer-1 networks today. As a result, slow transactions and high gas fees have been counterproductive for the crypto world. An interchain platform like Celer that facilitates cross-chain communication, and is fast while being inexpensive to deploy, comes as a boon for layer-1 networks. Celer’s partnership with Avalanche, Arbitrum, Ethereum, BSC, and many others is a testament to the fact that layer-2’s application is being hailed across networks.
The Celer Network is also leaving a mark in history by enabling the next-gen DeFi, GameFi, and micro-payment solutions.
Key features of Celer Network
The Celer Network is in good capable hands as it was founded in 2018 by a team of engineers with specialised technical experience and Ph.D degrees from eminent universities such as MIT, Princeton, and others.
Aside from being an open-source protocol vetted by the community, Celer also offers the option of privacy-enabled DApps. It also facilitates private off-chain transactions.
DApp development could become much faster with Celer. With the option of choosing from a wide range of software development kits (SDKs), users can scale the DApps with ease. These SDKs are affordable and completely secure and create interactive applications in a much shorter span of time.
Tackling two of the biggest challenges of DeFi, high transaction fees and lack of usability, Layer2. Finance promises to revolutionize all existing DeFi protocols for a nominal amount. It has been dubbed “DeFi Public Transportation System” since it has the potential to reduce fees by almost 100 times.
Transfer between blockchains has never been more affordable and swift. cBridge has the potential to facilitate instant transfers between any decentralized network in the future.
Delegated Proof of Stake (DPoS)
A variation of the Proof of Stake mechanism, the Delegated Proof of Stake (DPoS), facilitates staking tokens in exchange for rewards while assigning or delegating the process of validating the transactions to someone else, making the Proof of Stake cycle extremely efficient.
By opening up blockchain interoperability, Celer can focus on efficient liquidity and capture a wider market. This in turn increases the adaption, reliability, and coverage of the network.
Layers of the Celer Network – cStack
Celer created a robust and profitable architecture to ensure speed and fewer congestion issues. The layers combine advanced decentralised technology and the economics of scaling.
This is the bottom-most layer responsible for interacting with the blockchain. Private networks function on this layer. All the state channels and side chains of the Celer Network operate here.
This is the middle layer essential for highly scalable DApps. The speed and volume of the transactions per second are driven by this layer. cRoute facilitates the smooth and efficient running of the system, especially during high transaction volumes.
The top-most layer of the cStack directly builds DApps on the network. The entire development framework that supports DApps is contained in this layer. It is the very core of the network which is responsible for the workflow.
Celer Network’s token – CELR
CELR tokens have a maximum supply of 10 billion tokensAt present, around 6.52 billion CELR tokens are in circulationCELR is an ERC20 tokenThe CELR token enables the functioning of cEconomy, which is an off-chain crypto-economic incentive structure of Celer NetworkAs part of the Proof of Liquidity Commitment process, CELR tokens are given as incentives for maintaining liquidity and stabilityLiquidity Backing Auction uses CELR to increase the priority of liquidity bids and increase the interest payoutThe State Guardian Network is a membership staking token that ensures their in-house state channels are functioning smoothly
The Celer Network is rapidly adapting to increase the interoperability between blockchains. The crypto community’s favorite network and its future contributions are a must-watch for all crypto enthusiasts.
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