Celo is a comprehensive stack of new blockchain software, core libraries that operate on that blockchain, and end-user apps that connect with that logic, including a Wallet app.
Blockchain
A blockchain, also known as a cryptographic network, is a general word that refers to a database that is maintained by a dispersed group of computers that do not have a trust relationship or common ownership. This is referred to as a decentralised setup. The content of a blockchain’s database, or ledger, is authenticated using cryptographic techniques, prohibiting its contents from being added to, changed, or removed unless in accordance with a network-wide protocol.
The Celo Blockchain code is related to Ethereum, a blockchain software platform for developing general-purpose decentralised applications. Celo varies from Ethereum in numerous key ways, which are discussed in the following sections. It does, however, inherit a number of crucial notions.
Contracts that are Smart
Smart contracts are used to build Ethereum apps. Smart contracts are programs written in languages such as Solidity that generate bytecode for the Ethereum Virtual Machine. This is also known as the EVM, which is a runtime environment. On-chain programmes are those that receive messages and alter the blockchain ledger and are encoded in smart contracts.
Cryptocurrency
Celo features a native accounting unit, the cryptocurrency CELO, which is analogous to Ether on Ethereum. Celo’s ledger is made up of accounts, each of which is recognised by an address. Accounts are classified into two sorts. Externally owned accounts have a CELO balance and are managed by a user who has access to the public-private keypair. Contract accounts hold the code and data for a single smart contract that may be invoked and alter its own data.
ERC-20 is a standard interface for integrating coins or tokens as contracts as opposed to account balances. Celo for Ethereum Developers has further information on this. CELO is a dual currency in Celo, serving as both the local money and an ERC-20 compliant token on the Celo blockchain.
Transactions
Users engage with the blockchain by generating signed transactions. These are requests to make a ledger adjustment.
Transactions can do the following tasks:
- Money can be transferred between accounts.
- In a smart contract, execute a function and provide parameters.
- Make a brand-new smart contract.
Blocks
A protocol updates the blockchain by taking the current state of the ledger and applying a series of transactions. In turn, each of which may run code and result in alterations to the global state. This generates a new block that has a header that identifies the preceding block as well as additional metadata. As well as a data structure that represents the new state.
Fees for Transactions
To prevent Denial-of-Service attacks and guarantee that calls to smart contract code are terminated, the account sending a transaction pays transaction fees for its execution steps using its own balance. Transactions define a maximum gas that limits the stages of execution before reverting a transaction. The unit price for each step is determined by a gas price, which is used to prioritise which transactions the network implements. (Transaction costs in Celo can be paid in ERC-20 currencies, and gas pricing works differently than in Ethereum.)
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