Forbes notes that other financial transaction platforms hope to benefit from Facebook’s struggles in launching its Libra cryptocurrency — including Celo.
The key value proposition of the assets running on top of the [Celo] platform is that they are immune to the wide swings in volatility that have plagued leading crypto assets in recent years. Many are designed to mirror the price movements of traditional currency, and most have names that reflect their fiat brethren, such as the Gemini Dollar. This is a critical need for the industry, as no asset will be able to serve as a currency if it does not maintain a consistent price. However, rather than being a centralized issuer that supports the price pegs with fiat held in banks, Celo has built a full-stack platform (meaning it developed the underlying blockchain and applications that run on top), that can offer an unlimited number of stablecoins all backed by cryptoassets held in reserve.
Furthermore, Celo is what is known as an algorithmic-based stablecoin provider. This distinction means that rather than being a centralized entity that controls issuances and redemptions, the company employs a smart-contract based stability protocol that automatically expands or contracts the supply of its collateral reserves in a fashion similar to how the Federal Reserve adjusts the U.S. monetary supply… Additionally, a key differentiator for Celo from similar projects is that for the first time its blockchain platform allows users to send/receive money to a person’s phone number, IP address, email, as well as other identifiers. This feature will be critical to the long-term success for the network because it eliminates the need for counterparties in a transaction to share their public keys with each other prior to a transaction.
And now… Celo is open-sourcing its entire codebase and design after two years of development. Additionally, the company is launching the first prototype of its platform, named the Alfajores Testnet, and Celo Wallet, an Android app that will allow users to manage their accounts and send/receive payments on the testnet.
This announcement and product is intended to be just the first of what will be a wide range of financial services applications designed to connect the world.
Celo’s investors include LinkedIn founder Reid Hoffman and Twitter/Square CEO Jack Dorsey, the article points out, as well as some of Libra’s first members, “including venerated venture capital firm Andreessen Horowitz and crypto-unicorn Coinbase.”