Celer

  • Cryptoasset Report
  • October 30, 2018

The Celer Network aims to use generalized state channels and an innovative routing algorithm to create a DApp platform that can scale to billions of transactions per second.

Overview

The Celer Network hopes to remove barriers to blockchain technology’s mass adoption by producing a scalable, privacy-preserving network. This is accomplished via a layer of generalised state channels, which allows parties to transact in isolation from the mainchain. The Celer Network’s core team includes Google alums, and technical experts with PhDs in Algorithmic Game Theory and high performance distributed systems. A co-founder, Dr. Mo Dong, founded a startup focused on formal verification in network communications called Veriflow. Dr. Mo Dong also teaches an online course in smart contract development, which hundreds of students have graduated, indicating remarkable community building efforts.

Protocol Details

Generalized state channels can extend the logic around payment channels for payment distributed payments to transactions around arbitrarily complex DApps. Directed Acyclic Graphs (DAGs) model dependencies between states, allowing the Decentralized Application Operating System (cOS) to support DApps that perform more complex tasks than rudimentary payments. DAGs will be abstracted in the cOS development environment, so DApps developers on Celer will not need to map out a DApp’s dependencies on and with other DApps. To improve the developer UX of the tooling, human-readable errors will be thrown should an item of code breach acceptable dependencies on other network state channels.

Since establishing channels pairwise between all nodes in the network is impractical, Celer use a distributed routing algorithm that allows the network to find paths between payments channels that satisfy transactional requests (should they exist) based on nodes communications with their neighbours. Opening up state channels, in order to facilitate off-chain payments, requires users to deposit tokens on-chain. To provide off-chain routing with adequate liquidity to function, Proof of Liquidity Commitment (PoLC) incentivizes users to lock up tokens, with rewards issued in CERL should they opt to verifiably back the network. Liquidity Backing Auctions (LiBAs) will help connect those with insufficient liquidity to support their off-chain processes with the above mentioned providers. The State Guardians Network (SGN) is a special form of sidechain that is permitted to facilitate action on disputes when affected users are offline.

Asset Details

The CELR token will have an initial and total supply of 10 billion, of which 30% will be available in the token generation event, a further 30% allocated for mining rewards and off-chain ecosystem building, and the remaining 40% going to the team, advisors and foundation reserve, with a 2 year lockup. CELR tokens are issued as rewards to those who provide the network with liquidity by locking up digital assets in the Collateral Commitment Contract. CELR also plays a role in helping those without sufficient liquidity borrow it from others. A willing liquidity provider can state an available amount over a given time span, with an associated fee in CELR. CELR token holders can also stake a portion of their tokens towards the State Guardian Network, therein becoming State Guardians. If a user wishes to be offline for sometime then associating their funds with the SGN can represent a delegation of responsibility for these funds to the network of reputation scored guardians. A State Guardian is authorized to resolve users’ transaction disputes, and, when a user goes offline, a State Guardian can be entrusted with user funds for an associated fee.