Is Worth Investing in Celer Network (CELR)?

Celer Network (CELR)

The Celer Network (CELR) is another high-profile project that is looking to develop a layer-2 scaling platform. More specifically, it wants to enable developers quickly build and operate highly scalable decentralized applications. They join a long list of companies that are trying to acheive similar ends. Celer Network is also quite well known as they are completing their ICO on the Binance Exchange Launchpad.

In this Celer Network (CELR) review we will give you everything you need to know about the project including its technology, roadmap and team members. We will also analyse the long term potential of the CELR tokens.

What is The Celer Network (CELR)?

The Celer Network (CELR) is building off-chain solutions to help scale blockchain throughput. The project claims that its network will scale to billions of transactions per second, giving it internet level scalability. The theoretical reasoning is that since the network processes transaction off the blockchain its throughput is limited only by the number of nodes in the network. Throughput will increase linearly as more nodes get added to the network.

Although there have been doubters, the Celer team remains confident their off-chain solution to scalability is the right direction to take. They acknowledge that on-chain solutions such as sharding and alternate consensus methods can make a blockchain faster. But they also point out that there will always be limitations to on-chain consensus that keep it from reaching internet-level scalability.

The Celer team has named its architecture the cStack, and it is a four layers architecture based on the same principles that allowed the internet to become so successful. The four layers of the cStack are as follows:

  • cApps – This is where applications will reside and it is designed to scale and to maintain user privacy. The team has already released the first working cApp.
  • cRoute – This is the protocol developed for routing states, such as a payment, in a trust-free manner between users. The protocol is said to be highly resistant to failure, and able to scale to 15x greater throughput than the Lightning Network or Raiden.
  • cOS – This is the development framework for dApps that will handle storage, operation, tracking and any disputes of off-chain states.
  • cChannel – The cChannel is a sidechain suite which maximizes liquidity and supports rapid state transitions. This layer of the architecture will allow Celer to transition to large throughput applications such as online gaming, decentralized exchanges, prediction markets, insurance products and online auctions.

The Celer Network (CELR) Token

The upcoming ICO on Launchpad will be selling the Celer Network (CELR) token, which is the native token for the Celer Network. There is a total supply of 10 billion CELR and nearly 6% of that will be available in the ICO, with pricing at $0.0067 per token.

There is a hard cap of $1,500 per account, and the tokens can only be purchased with Binance’s BNB tokens. While the ICO is planned for March 19 through March 24 it is likely that it will sell out within hours of the previous Fetch and BitTorrent ICOs on Launchpad are any guide.

You can see the breakdown of the distribution of funds from the ICO. The Binance Launchpad sale is only a small percentage of the funds and there were two previous fund raising rounds took place which saw the distribution of a sizable portion of the coin supply.

There are several uses being planned for the CELR token, from adding value for users to providing network security and stability. Of course, it will be used as a platform currency, but it is also planned to have the following additional uses:

  • Proof of Liquidity Commitment (PoLC) – This is a mining process that is designed to maintain liquidity. It is a staking system in which users have to lock up CELR for a period of time and are rewarded with additional CELR tokens.
  • Liquidity Backing Auction (LiBA) – This will allow off-chain providers to request liquidity, and lenders will be able to stake tokens to offer them as loans. The lenders will be ranked in the system based on the number of staked tokens, the liquidity already provisioned, and the interest rate being offered.
  • State Guardian Network (SGN) – Any user will be able to submit their state before going offline to have it protected for a set period of time for a set fee. Holders of CELR tokens will be able to stake them to earn service fees for providing state protection.

As is true for most blockchain networks, the CELR tokens should gain in value as more users join the network and use the tokens. An increasing number of applications will also help support increased value, as will transaction speeds and ease of use. And the incentive features that we have mentioned will also help to increase demand for the CELR token, thus increasing its value.

Team & Partners

The Celer Network (CELR) and its team are based in California in the United States. It is a small team, comprised of the four founders (all of whom are PhDs) and 8 additional team members, most of whom are blockchain developers.

You can learn more about the four co-founders below:

  • Dr. Mo Dong – Dr. Dong was previously an engineering team lead and product manager at Veriflow, where he worked on network formal verification for four years. He has a background in game theory, formal verification and distributed systems.
  • Dr. Junda Liu – Dr. Liu was previously at Google for seven years, performing a number of roles. His background is in large-scale networks and high performance networking.
  • Dr. Xiaoxhou Li – Dr. Liu spent two years at Barefoot Labs as a software engineer, and previously he was a research assistant at the University of Pennsylvania, Intel, Microsoft and Princeton University. His background is in data management, storage, networking and distributed systems.
  • Dr. Qingkai Liang – Dr. Liang was a research assistant at MIT Laboratory for over four years and also held research intern roles at Bell Labs and Google. His background is in network control algorithms and distributed systems.

Bottom Line

Celer Network (CELR) is ready to launch the third ICO on the new and popular Binance Launchpad platform, and while the competition of off-chain scaling solutions is stiff, the popularity of ICOs on Launchpad almost guarantees this ICO will sell out quickly. With that in mind, similar projects have had poor post-ICO performance (Raiden at 0.45x ICO price and Trinity at 0.05x ICO price). The fact that we are deep in a bear market could help limit downside however.

In looking at the proven speed of the network (15x faster than rivals) and the projected scalability it appears Celer Network could be a ground-breaking technological development, but it remains unproven. The Celer Network is also a fairly new project, having gotten its start in June 2018. The team has deep knowledge and expertise, and this could give them an edge in delivering a unique off-chain scaling solution.

Celer Network (CELR)

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