What is Celer Network?
Celer Network is a revolutionary layer-2 scaling platform that aims to bring mass adoption to blockchain applications on Ethereum, Polkadot, and other blockchains. Layer 2 technology, also known as a network that operates on an underlying blockchain protocol, is designed to improve efficiency and scalability. According to the Celer Network whitepaper, the platform is a trustworthy, privacy-preserving, and internet-scale solution that allows users to operate, build, and use high-scalable decentralized applications (DApps). The platform is also designed to be compatible with both present and future blockchains.
In today's economy, the flow of information and value is crucial. While the transfer of information has progressed rapidly thanks to the internet, the transfer of value is still lagging behind. Blockchain technology has the potential to solve this issue by allowing for faster value transfer, but it is currently limited by its low processing power compared to traditional value transfer tools. Scalability is a major challenge that hinders the mass adoption of blockchain technology.
The Celer Network whitepaper also highlights the limitations of on-chain consensus, which is a threat to privacy as all transactions are permanently public. To address this, the Celer Network team places a strong emphasis on off-chain scaling technology, bringing internet-scale technology closer to the current and future blockchain technology. The platform is designed with an off-chain technology stack for greater flexibility and scalability, while also prioritizing the privacy and robust security of the crypto-economic model.
The Celer Network has a well-layered architecture that simplifies the development, maintenance, and system design. The network consists of cStack, an off-chain technology stack that can be built on different blockchains. Two essential products provided by the Celer Network are Layer2.Finance and cBridge. Layer2.Finance aims to eliminate the challenges that prevent decentralized finance (DeFi) from achieving mass adoption, such as high transaction fees and difficulty in use and navigation. cBridge, on the other hand, is a multi-chain network that provides low-cost and instant transfer of value across and within Ethereum’s layer-2 chains and Ethereum main chain, as well as future layer-1s.
CELR is the protocol token of the Celer network. The network utilizes three cryptoeconomic mechanisms to complete its off-chain scaling solution: proof of liquidity commitment (PoLC), liquidity backing auction (LiBA), and state guardian network (SGN). PoLC is a virtual mining process that helps acquire stable liquidity for the off-chain ecosystem. LiBA helps off-chain service providers to achieve liquidity through crowd-lending with negotiated yield rates. SGN is a special sidechain that protects users when they are offline, ensuring that their states are available for disputes. To participate in PoLC and SGN and to gain guarding chances and service fees from users, guardians must stake their CELR.
Overall, the Celer Network is a promising solution that addresses the scalability and privacy limitations of current blockchain technology, bringing us closer to achieving internet-scale blockchain systems with decentralization, trust, and more privacy. The platform's off-chain technology stack and innovative cryptoeconomic mechanisms make it a strong contender in the race towards mass adoption of blockchain technology.
The investment information, comments, and recommendations provided here do not fall under the scope of investment consulting. Therefore, making an investment decision based solely on the information and comments provided here may not yield results that meet your expectations.
Stay ahead of the competition by accessing high-quality data, advanced tools, and expert research.Try for Free