Ethereum network always comes to mind whenever there’s a conversation about blockchain technology. It’s the leading layer 1 chain hosting the top crypto projects like AAVE, Sandbox crypto metaverse and more. The problem it still has is scalability.
To solve the scalability issue across multi-chains we have Celer network – a layer 2 blockchain that aims to achieve “internet level scalability”. Blockchain technology is reaching mainstream and this will be the right time to review Celer and explore its potential. Why wait more, let’s dive in and explore Celer –
|
Table of Contents |
What is Celer Network?
Celer Network is an interoperable, highly scalable layer-2 blockchain that allows users to build and use DAPPS on the network. Users can access tokens, NFTs, DeFi, GameFi and many other protocols across multiple blockchains via Celer. In addition to it, developers can build inter-chain DAPPS using Celer tool i.e Message SDK. It offers 3 core products which will be discussed later in the post.
Celer network was founded in 2018 by a team of four individuals. As the demand has shifted towards multi-chain ecosystem, Celer has transformed its core technology i.e the State Guardian Network used in a generalized state channel network to a generalized inter-blockchain & cross-layer communication platform. This upgrade led to the creation of the Inter-chain messaging framework – Celer IM, cBridge and layer2.finance (Celer network products).
Celer Products:
Celer ecosystem offers 3 core products –
- State Guardian Network
- Layer2.Finance
- cBridge
State Guardian Network (SGN):
State Guardian Network is a scalable & decentralized sidechain that takes care of off-chain state security for the users. Its services include but are not limited to client channel state protection, delegated payment receiver, and app connectivity oracle.
Any CELR token holder can stake tokens, earn incentives and view the network information via SGN web portal. Checkout the SGN architecture shared below –
The architecture comprises of four components. Mainchain smart contracts (layer-1), Delegators, Sidechain Validators (layer-2) and sidechain users. More details on the network infrastructure can be read from the Celer docs.
SGN mainnet was launched in 2020
Layer2.Finance:
Launched on Ethereum mainnet, Layer2.Finance addresses the challenges preventing DeFi from reaching the masses. The problems are high gas fees and complex navigation. With Celer’s advanced layer-2 rollups, it aims to bring down the issue of high gas fees and provide a user-friendly UI for a smoother experience.
In order to use Layer2.Finance, users need to transfer the assets from layer-1 to layer-2 before moving funds among various DeFi strategies at a very low cost. The protocol aggregates the total funds in L2 and sends them to L1 in a single batch, thus effectively reducing the cost per user.
Layer2.Finance call itself the public transport of DeFi. More the number of users, lesser will be the cost
cBridge:
cBridge is a decentralized and multi-blockchain asset bridge that supports instant transfer of tokens at the lowest possible cost. Built on top of the Celer inter-chain message framework, cBridge supports 80+ tokenized assets across 20+ blockchains. Here’s the list of benefits offered by cBridge to different stakeholders –
cBridge has processed over $5 billion worth of cross-chain asset transfers on 20+ blockchains
🤩Amazing to see @RangoExchange integrated Celer cBridge and Celer IM to support bridging/swaping any token to Evmos all in a single click! https://t.co/VCuoW9iKnG
— CelerNetwork (@CelerNetwork) September 17, 2022
How does Celer Work?
Let us understand how Celer works by looking at the message flow. Celer uses smart contracts that are deployed on different chains paired with State Guardian Network (SGN). To send a message across blockchains, a user or a dapp has to initiate a message to the Message Bus smart contract on the source chain. Once the message is initiated, SGN validators will authenticate and approve it before relaying it to the destination via an Executor subscribing to the message.
On the destination chain, the same Message Bus contract exists to check the validity of the message and triggers the logic associated with the message as shown below –
Message Flow with cross-chain token transfer using cBridge –
What is CELR Token?
CELR is the native protocol token of Celer network. Built on Ethereum blockchain, it is an ERC20 token that is sold in the ICO round on the Binance launchpad in 2019. The token has the following utilities –
- Staking
- Network Fee Payment
Celer follows DPoS (Delegated Proof of Stake) consensus mechanism to validate transactions on the network. The process requires staking CELR tokens to secure the SGN sidechain and in return, users are incentivised with staking rewards. Any user who uses Celer services must pay the network/ transaction fee in CELR only.
CELR Tokenomics:
CELR has a total supply of 10 billion tokens and the token allocation can be seen from the image shared below –
The token release schedule will continue till August 2025, marking the completion of locking period as per the token allocation –
CELR ICO:
CELR ICO was launched on Binance launchpad in March 2019. The token was offered at a discount price of $0.0067 per token. 6% of the total supply was allocated to the public sale that helped raise $4.0 million at the end of token sale. Further details are shared below –
How to Stake CELR?
Staking is an important part of CELR network since it uses DPoS consensus mechanism. DPoS uses staking and election process to decentralise the network while maintaining operational efficiency at the same time. DPoS allows delegators to vote on potential sidechain validators by staking tokens on them and in return receive staking rewards.
To everyone’s surprise, staking happen in layer-1 mainchain and not on layer-2 SGN. To stake your CELR tokens visit SGN staking else you can stake directly from Binance exchange or Crypto.com (CRO) exchange.
NOTE: Layer-1 CELR staking on Ethereum may attract higher gas fee
Celer Benefits:
Lower Gas Fee:
Celer was developed to become a highly scalable chain with the lowest gas fees. It has proved its capability by developing core products like cBridge that charge just a fraction of fees when it comes to multi-chain token transfer.
High TPS:
The network is already beating Ethereum when it comes to the capability of processing number of transactions per second. With DPoS consensus mechanism, it aims to become a high-speed transaction network that guarantees faster settlements.
Multi-Chain:
Started as a scaling solution for the Ethereum network. Celer has turned itself into a multi-chain ecosystem supporting transactions among 20+ blockchains making it the most up-to-date layer-2 scalable solution.
📈Can't stop, won't stop! 🚀cBridge continues into orbit with $10.5B in total transaction volume bridged! Curious and looking to explore your #MultiChain options?📭DMs are open. 🦄https://t.co/35fICZaYc2: most # of chains, lowest fee, fully non-custodial, no vendor lock-in! pic.twitter.com/JfZeuatyAb
— CelerNetwork (@CelerNetwork) September 6, 2022
Celer Drawbacks:
Competition:
The market for scalable layer-2 blockchains is stagnating. There’re tons of projects offering low gas fees, high tps and other benefits similar to the Celer network. It’s a tough battle to win especially when you have projects like Polygon (MATIC) dominating the space with noteworthy partnerships.
ETH2.0 Rollout:
ETH2.0 is expected to roll out in 2022, this will be a big blow for layer-2 scalable networks if the updated version match or surpass the level at which layer-2 chains are operating.
Efficient L-1 Chains:
There’s an emergence of layer-1 chains like Solana, NEAR and even Hedera Hashgraph who are attracting developers and users with better support and tech features, almost eliminating the need for layer-2 chains.
CELR Coin Price:
Please check the latest price of CELR Coin, shared below –
CELR Coin Price Prediction:
Launched in the ICO at a sale price of $0.0067 per token. The token reached an all-time high of $0.16 and later declined to a level below $0.04 in the 2022 market crash. At the time of writing, CELR is moving in the range between $0.05 -$0.08, showing no signs of resilience.
Will CELR coin reach 1 dollar?
Looking at the technical charts, it’s clear that the token is less volatile and has bearish momentum. It doesn’t look like the token will hit $1 mark anytime soon. In the best-case scenario, it may break its peak and aim for $0.30 else will remain stagnate in the current zone or may go down further.
Checkout Immutable X, Layer-2 solution for NFT projects on Ethereum
Where to Buy CELR token?
CELR can be bought from leading exchanges like Binance, Tokocrypto and Crypto.com
Is CELR coin a good investment?
Looking at the technical charts & the current market conditions, CELR may not be a profitable investment. The token has failed to build momentum and attract whales to drive up its price.
Although the fundamentals are good, the same is camouflaged by the emerging competition. We have layer-2 chains like Polygon and Zilliqa fighting for the same spot. If that’s not enough, we have layer-1 chains like Avalanche (AVAX) offering a much better & scalable solution compared to layer-2 chains.
Expect the price to go down further after ETH2.0 launch. Since there aren’t any noteworthy dapps on the network, the chances of CELR hitting $1 mark anytime soon, look bleak. I will be neutral to negative on its growth potential. Let’s see if the market can surprise us all.
This completes my review of Celer Network (CELR Coin). In the next post, I will talk about Treasure crypto (MAGIC) & CENS world metaverse. If you’re a fan of blockchain technology then do share this post on your social handles and educate everyone around you. Remember to subscribe to my YouTube channel for more informative content, released every week.
DISCLAIMER:
Cryptocurrency is a highly volatile market. All the information shared in the post is for knowledge purpose only. By no means, it’s financial or investment advice. Readers are responsible for their own investment decisions and should only invest in cryptocurrency after proper research.
[post_grid id=”6111″]
Paras is a blockchain writer & video creator at Katoch Tubes. In his free time, he loves watching space exploration documentaries & Hollywood movies.