Celo

Celo offers an Ethereum virtual machine (EVM) compatible Layer 1 blockchain stack that uses the proof of stake consensus mechanism, enabling users to build decentralized applications and other tools. It offers native token CELO and a number of stablecoins (such as cUSD and cEUR). As of April 2024, the protocol supported over 1,000 projects across more than 150 countries.

In July 2023, the company announced plans to convert its blockchain to an Ethereum-based Layer 2 network via the Optimism software stack. It also integrated EigenDA, a data availability layer developed by EigenLayer, to reduce network storage expenses. It claimed the transition would increase its transaction throughput by 50%. In July 2024, it launched its first testnet for the layer 2 network.

Key customers and partnerships

Celo operates “Alliance for Prosperity”, a service organization aimed at growing the Celo economy, which included over 200 global organizations (as of April 2024) like Andreessen Horowitz, Anchorage, and Coinbase. The platform authenticates users by mapping their phone numbers to public keys and provides cross-chain interoperability to enable users to build applications that can communicate between chains.

In August 2023, the company added Google Cloud as a validator on its network. This also enabled Celo to leverage Google’s Blockchain Node Engine to support its transition to an Ethereum Layer 2.

Funding and financials

In April 2021, Deutsche Telekom invested in Celo via the purchase of CELO tokens and began operating part of Celo’s infrastructure via its subsidiary T-Systems MMS. Deutsche will leverage its “Open Telekom Cloud” (OTC) to fulfill the security and compliance requirements of the European regulatory framework and act as a validator to the Celo ecosystem. Additionally, Deutsche offered its SMS API to allow validators to send verification texts using their service.

Celo launched its mainnet in May 2020, after raising USD 10 million in an initial coin offering of its cGLD tokens on CoinList.