Blog Crypto How Celer Network’s Coin (celr) Is Growing The Blockchain

How Celer Network’s Coin (celr) Is Growing The Blockchain

date March 5, 2021 time 5 min read 983 views

For blockchain to be a viable alternative to our current centralized financial systems, it needs to support a high number of transactions. But unfortunately, many are lagging behind non-blockchain options for actual usability. Celer aims to change this, and Celer network coin is right at the forefront of the battle.

Ever thought that blockchain solutions need to be better, faster, stronger? The Celer network developers would agree — and they’re trying to change that using Celer network coin (CELR).

Using new technological advances, Celer aims to create a hub where developers can make effective Blockchain applications without sacrificing security or decentralization. We’ll explain how Celer aims to do it, why it even wants to, and whether you should get involved.

Celer Network is a blockchain aiming to make blockchains more useful while maintaining decentralization
Celer Network is a blockchain aiming to make blockchains more useful while maintaining decentralization (source: altcoinbuzz.io)

What is Celer network?

For apps developed on the blockchain to be usable, developers usually find themselves choosing between fast transaction speeds, security, and decentralization. This is also known as the famous “blockchain trilemma”. Celer was created as a solution to ensure they won’t have to.

The Celer Network is a layer-2 scaling platform. But that might not mean much to you, so let’s explain in a little more detail.

Layer 1 protocols

Layer-1 protocols are the surface-level architecture in the blockchain — generally, these are the parts that relate to transactions like mining, voting, staking, and more. The best-known cryptocurrency networks are usually layer-1 protocols, including Bitcoin and Ethereum.

Layer 2 protocols

Meanwhile, layer-2 protocols are built on top of the layer-1 architecture to add extra capabilities, such as the ability to make “off-chain” transactions (which don’t use the layer-1 protocol). In the case of Bitcoin, its Lightning network is a layer-2 protocol.

You can have layer-1 architecture without layer-2 architecture, but you can’t have layer-2 architecture without layer-1 architecture.

Advantages of the Celer network and layer-2 architecture

Celer is a layer-2 architecture where developers on any blockchain can build decentralized apps (dApps), This provides more use cases for underlying layer-1 blockchains and their cryptocurrencies.

Since layer-2 networks like Celer build on top of protocols based on the first layer, they make use of the chain’s existing security and verification protocols. This allows them to focus solely on efficiency or new functions while the original chain worries about basic functions like transactions. 

One example of a layer-2 project is Augur. Augur is a Dapp built on Ethereum that lets you bet on the outcomes of different events around the world with your ETH. This is something Ethereum alone couldn’t offer and in return, it increases the demand for the Ethereum blockchain.

Since crypto protocols need to introduce complex solutions to keep their platforms decentralized, they often end up running slowly and less efficiently. This in turn makes it more difficult for them to produce more tools on their blockchains which limits their usefulness and can limit adoption.

Celer Network is a layer-2 scaling platform aiming to improve layer-1 protocols
Celer Network is a layer-2 scaling platform aiming to improve layer-1 protocols (source: medium.com)

What is the Celer network coin (CELR)?

Celer network’s native coin, CELR, is used to ensure liquidity, stability, security, and connectivity of the economic system within the Celer network, aptly called the cEconomy.

CELR is essential for the three following processes:

  1. Liquidity mining. A mining process that lets you put other cryptocurrencies down as collateral and receive CELR as a reward. This provides liquidity for other service providers offering services as dApps on the network with other tokens.
  2. State guardian network. You can stake your tokens to your node and can become a “state guardian” on the network. Your staked node keeps the Celer network safe in exchange for rewards depending on the platform’s success and performance.

CELR is also used to pay transaction fees and make payments to service providers (who make dApps) within the Celer network.

Celer claims a network that is decentralized and secure with low transaction costs
Celer claims a network that is decentralized and secure with low transaction costs (source: amazonaws.com)

Celer network coin history

Celer network was launched in late 2018 by a self-described team of PhDs from MIT, Princeton, and UC Berkeley — many of whom formerly worked for tech giants like Google and Amazon.

The first Celer Network token sale took place in March 2019 on the Binance Launchpad. It raised $4 million in 17 minutes on the platform, with Binance accounting for 97% of the initial trading volume. Not a bad start.

In the second half of 2019, Celer partnered with TROY to improve the platform’s layer-2 trading. And in February of 2020, Celer partnered with Polkadot to bring layer-2 scaling to a new blockchain network called Parity.

Is Celer network a good investment?

When CELR launched back in 2019, it was worth roughly $0.02 per token. Its value has mostly remained between $0.001 and $0.02 ever since. The price failed to increase dramatically after its launch.

Although there was a high point at the beginning of 2021, when Celer coin’s price shot from $0.004 to $0.02, it dropped down again soon after.

Not exactly the most promising growth path for investors.

However, as mentioned earlier, Celer has successfully collaborated with two major crypto projects. These prove Celer has some traction within the industry.

Another exciting development was the launch of Celer’s mobile gaming app, CelerX. In September 2020, it became the first mobile esports platform using blockchain to bring in more than $3 million from player winnings in a month.

It’s easy to argue that the performance of Celer network coin’s price has been lackluster so far, but if you believe in the mission of the technology, you might think it’s worth taking a look at.

How to purchase CELR on MyConstant

If you fancy investing in CELR, you can of course purchase it on an exchange. But if you don’t want to trade your crypto for it you might want to buy it on loan through platforms like MyConstant

We’re a P2P lending platform that lets you use your crypto for a USD of stablecoin loan. If you choose to take your loan in a crypto like CELR, we scour all the major exchanges to find the lowest price on the market at any given time and make the trade for you.

A crypto-backed loan from MyConstant also offers:

  • Borrowing rates starting at 6% APR.
  • You can leverage the buying power of multiple cryptocurrencies.
  • 24/7 customer service.
  • Secure collateral storage
  • No additional or hidden fees.

If you want to dip your toes into a CELR investment but are wary about selling your crypto, sign up for free today and see what you could be doing with your crypto today.

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George Schooling

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