Have A Look Into The Report On Libra Rival Celo Launching Alliance For Prosperity
We bring you the details of the Celo foundation. What is it that they are targeting by their Alliance for Prosperity initiative? The details open a new horizon for you.
All About Celo
Backing a competing cryptocurrency developer platform some of the Libra Association members like Andreessen Horowitz and the Coinbase Ventures, are double-dipping as they have launched along with over 50 partners, non-profit The Celo foundation’s ‘Alliance For Prosperity’ thereafter offering a way for the developers building decentralized mobile apps based on Celo’s blockchain platform and USD stablecoin. Still, in testing with plans to officially launch its main-net later, the open-source Celo platform is a non-profit raising $ 36.4 million that includes a Series A as the Andreesen Horowitz’s a16z crypto bought $ 15 million worth of Celo Gold tokens.
Differentiating between Celo’s network and other blockchains, the truth is that payments in the Celo Dollar stablecoin are sent to people’s phone numbers rather than complicated addresses, as the goal is thereby to make delivering the utility which is via blockchain easier, therefore, building a flexible network of applications which doesn’t scare regulators as Libra has. Including Andreessen Horowitz, Coinbase, Bison Trails, Anchorage, and Mercy Corps, it is here that the Alliance for Prosperity keeps as the Libra Association members potentially creating a conflict of interest regarding the cryptocurrency as well as developer platform promoting to their portfolio companies, integrating into their products, or focusing on for delivering financial services to the needy.
Subsequently, as they try to replace the dollar with its synthetic currency Celo and its reserve backed with other cryptocurrencies rather than fiat cash making it more acceptable to the regulators worried that Libra ‘s token, as well as fiat currency bundle, backed reserve impacting the global financial system. The Celo Wallet the first of the decentralized apps on the platform is now already available for iOS and Android.
Celo And Its Alliance For Prosperity
With some lofty intentions for social impact, Celo like many blockchain projects has use cases including powering mobile and online work enabling faster and affordable remittances reducing the operational complexities of delivering humanitarian aid facilitating payments enabling microlending where the real driver of the potential is the promise of Celo with much lower transaction fees than traditional middlemen charge.
Here come the biggest threats to Celo’s success that are those banking infrastructures improving it faster than expected with the mobile adoption or LTE data not expanding on the current trajectory mentioning the likes of developer fatigue, the regulatory scrutiny, as well as technical complexity or the slow adoption of blockchain utilities having plagued other crypto for good projects.
Many organizations have on-the-ground operations beginning to get Celo into the hands of those who are being undeserved by the current global financial system according to Andreessen Horowitz's general partner Katie Haun as she says they hope that the partnership is set to start unlocking the potential of internet money. Furthermore, to spur the adoption, the Alliance is ready to distribute Prosperity Gifts which come in the form of financial grants to developers proposing Celo products benefitting the society.
The Future OfCelo In Crypto world
Celo’s system comes with some peculiar characteristics where people exchange other cryptocurrencies for Celo Gold exchanging that for Celo Dollars which they can spend even though they can get Celo Dollars from other exchanges too, as it is backed with other cryptocurrencies similar to bitcoin and Ethereum rather than fiat which doesn’t have to be fully collateralized through the protocol thereby pushes towards full collateralization making it vulnerable to a Celo bank run or crash in the price of those currencies. It is here that Celo lets arbitrageurs pocket the difference if Celo Gold and Celo Dollars get out of sync.
Even though this could not pose to be a danger to the world financial system like Libra, it can be a danger to itself, whereas at least the anti-money laundering front cLabs is the team kicking off development of the Celo platform hiring former Capital One head of enterprise risk management Jai Ramaswamy. Along with this, the Celo founders come well pedigreed including Marek Olszewski and Rene Reinsberg spun out machine learning startupLocu from MIT and thereby selling it to GoDaddy together with EigenTrust inventor and former MIT Media Lab professor Sep Kamvar.
As of now, there are 130 teams expressing interest in building on the Celo platform whereas the reference is Libra as 1500 organizations had said they wanted to work on the project four months after its reveal. fostering projects for the blockchain is Celo Camp and Blockchain for Social Impact Incubator.
Concluding The Discussion With A Few Good Words
Making banking cheaper and more accessible as also powering new fintech innovation, Celo needs to get enough developers building truly useful products for that to happen making the blockchain and currency exchange simple enough for mainstream audiences in the developing nations growing adoption to meaningful levels where few cryptocurrency projects have yet achieved. Not just their names as the Alliance For Prosperity has thrown their weight in the project in case it is going to succeed.