CoinMarketCap takes a deep dive into a layer-2 scaling platform that aims to simplify the launch of blockchain applications.
Blockchain is a potential answer to a large array of problems faced by many industries. The technology is now working its way into all industries in various forms.
However, this technology isn’t perfect yet as it suffers from a number of challenges — perhaps the most prominent one is the scaling problem. Most blockchains simply cannot scale to the extent necessary to support millions of active users.
Celer provides an answer to this challenge with a suite of layer-2 scaling tools used to improve the efficiency of current-generation blockchain networks.
What Is Celer (CELR)?
Celer is designed to overcome the scaling limitations that some of the most popular blockchains face through a variety of novel products and protocols. It uses a combination of scaling technologies, including generalized state channels and rollups, that allow compatible blockchains to dramatically increase their throughput and better interact with one another.
It is designed to make the launch of highly scalable blockchain applications simpler by providing a high-speed layer-2 platform and an easy-to-build-on sidechain solution.
One of the first main solutions launched by the Celer team was the Celer state channel, a sidechain solution that can be used to bridge multi-chain and multi-layer assets. It uses a variety of components — including CelerPay, CelerApps, and CelerNodes — to produce a highly efficient platform for decentralized application (DApps) that can help scale layer-1 blockchains.
Beyond this, the Celer team has launched a variety of additional products, including layer2.finance, a platform that uses Celer's layer-2 rollup technology to improve the efficiency of DeFi, as well as cBridge, an upgrade to the Celer state channel network that allows low-cost value transfers across a variety of layer-1 and layer-2 chains.
When Was Celer Created?
Celer first came out of stealth in Q3 2018. It was built by a team of engineers primarily based in the San Francisco Bay Area. All the four co-founders of the platform, Mo Dong, Junda Liu, Xiaozhou Li, and Qingkai Liang, have extensive development experience, and many hail from prominent tech companies, including Google, Microsoft, and Intel.
How Does Celer Work?
The Celer network uses a type of layer-2 solution known as state channels to track the state of any arbitrary interaction between two parties, such as a payment or agreement over the blockchain. It works by allowing two or more parties to open a high-speed, low-fee payment channel, through which they can reassign value to one another via a smart contract before finalizing the events on an underlying layer-1 chain (such as Ethereum).
Celer's generalized state channel solution allows layer-1 blockchains to improve their speed and capabilities by moving much of the transaction processing burden off the chain — enabling off-chain smart contracts, payments, and communications. The platform uses a technology stack known as cStack (cOS, cRoute, and cChannel) to allow developers to easily create off-chain enabled applications that can use Celer's state channels to easily resolve payments and other transactions off-chain.
Celer's other products, including CelerX, layer2.finance, and cBridge, use a variety of different solutions to carry out their functions. These will be further discussed in the next section.
Since its launch in 2018, Celer has been rapidly building and releasing different layer2-based solutions. As of July 2021, the Celer team recently launched v1.0 of its layer2.finance DeFi scaling product as well as v1.0 of cBridge. Other main roadmap items for the rest of 2021 include the addition of ZK Rollup support to layer2.finance as well as a DeFi synthesis feature to provide a single entry point to the DeFi ecosystem of multiple chains.
Is There a Full Celer Roadmap?
Yes. Celer maintains an up-to-date roadmap here.
What Makes Celer Unique?
As one of the leading layer-2 scaling platforms, Celer incorporates a number of unique features that helps it in distinguishing itself from its competitors. These include support for multiple different scaling solutions including optimistic rollups and generalized state channels, with the potential to support others in future — potentially including Plasma, Validum, and ZK-rollups.
But perhaps its main distinguishing feature is the variety of different products within the Celer ecosystem. Rather than building a one-size-fits-all solution, the team behind Celer has created several different products to tackle specific problems in the industry. These include:
cBridge
A multi-chain network that facilitates low-cost token transfers between a variety of blockchains and layer-2 solutions while disregarding the use of Ethereum (or any other layer-1 chain) as a base layer. The technology can be used to connect Celer’s state channel network with practically any other network, allowing true any-to-any value transfers without limitations.
Layer2.finance
Celer’s new flagship application layer2.finance uses optimistic rollups to allow users to efficiently access Ethereum’s DeFi landscape. Through layer2.finance, users can move their funds to, from, and between a variety of popular DeFi protocols, including Compound and Aave, to maximize their yield while keeping the transactions fees down. The platform securely aggregates user funds together on Celer’s layer-2 chain to bypass Ethereum’s high transaction fees when interacting with supported DeFi apps.
CelerX
One of Celer's first products, CelerX, is a mobile e-sports platform and gaming application that rewards users in cryptocurrency for playing and competing in skill-based games. The platform is designed for games to be integrated easily, giving game developers a new way to monetize their games.
Want to learn more about layer-2 scaling solutions? Check out our guide on the subject!
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