With Celo, it is as simple to transfer money to anybody with an internet connection as it is to send a text message, and you may do this anywhere in the globe. Celo converts mobile phone numbers to digital wallet addresses using an innovative, decentralized address-based identification layer. Mobile members can receive incentives for their contributions to the system's upkeep and protection.
Byzantine Fault Tolerance (BFT)
A proof-of-stake governance system known as the Byzantine Fault Tolerance (BFT) lies at the core of Celo. This mechanism is responsible for keeping the distributed computer network in sync.
Validator nodes need to stake a minimum of 10,000 CELO tokens before they may power the blockchain and vote on updates. This means that everyone with CELO can assist in the operation of the network.
At this present, there are only 100 validator nodes that are active at any one time. The full nodes select these nodes via a voting process, and each node is subsequently compensated with a piece of the block reward for verifying the transactions.
The incentives distributed to full nodes come from the transaction fees that light clients pay.
The capacity of Celo to run stablecoins, such as cUSD, is one of its defining characteristics. Stablecoins provide a buffer against the inherent volatility of digital assets while maintaining the efficiency and transparency of cryptocurrency transactions.
Using something that they term a "programmed reserve," an overcollateralized resource consisting of CELO and other cryptocurrencies, such as Bitcoin (BTC) or Ethereum, Celo assures that each cUSD is always equal to one US dollar. This is done automatically (ETH). This indicates that cUSD may be purchased for an amount of CELO comparable to its value and vice versa.