Celes Chain is a public blockchain platform designed for supporting dApps (decentralized Applications) in the financial service industry. It enables financial applications to run on its blockchain and regulatory agencies to perform reviews about the financial products. It makes use of DPoW (Delegated Proof of Works) as consensus mechanism. CSSL, Celes Smart Script Language, is the scripting language used for the Celes Chain.
What are the tokens used for and how can the token value appreciate?
Users can use the Celes tokens to purchase services and applications on the Celes Chain or to purchase external hash calculations. The value of the tokens will increase with the demand for services on the Celes Chain.
How advanced is the project?
The team published a business and technical white paper in June. As of August 2018 an airdrop seems to be ongoing. The Celes team has raised tens of millions of venture capital and was selected for a Microsoft led accelerator in Shanghai.
Gao Han is the co-founder and CEO of Celes. He holds a PhD from University of Chicago, previously worked for Goldman Sachs, and was a founder of Guojin Securitie.
Michael Yeung is a co-founder and the Chief Scientist at Celes. He holds a Master of Computer Engineering from the University of New Castle and a Master in Financial Engineering from Imperial College in London. He counts with previous work experience in the investment and banking field.
Liu Zhijian is a co-founder of Celes and holds a Master from Hong Kong University. He previously worked in the banking industry.
Liu Yilan is the CTO of Celes and holds a Master in Computer Science. She was one of the early Tencent employees and counts with more than 14 years of experience in the web development field.
The Celes Team lists a number of partners on their website but no advisors.
Applications that run on Celes will run on a number of layers. Celes is compromised by the legal compliance layer, the data layer and the consensus layer.
Celes proposes a Virtual Machine called CVM (Celes Virtual Machine) for executing smart contracts, laws and regulations.
Celes lists three different user groups: participants, regulators and users. Participants are the financial institutions that use the Celes Chain and run applications on it. Regulators are the financial regulatory agencies. They can implement regulations on the Celes Chain in real time and use the network to perform stress tests. Users are individuals or entities that use the applications that run on the Celes Chain.
Strength and Opportunities
Among the investors of Celes Chain are recognized venture capital firms in the cryptocurrency space. Fenbushi Capital, who is an investor and partner of NEO is one of them. Other investors are Starwin Capital, Block VC, Northern Light, and PreAngel.
Weaknesses and Threats
The consensus mechanism used by Celes has so far not been sufficiently tested. As long as a new consensus mechanism has not been extensively analyzed by academic professionals, tested under real world circumstances and been functional without any complications for several months a new consensus mechanism should be considered as risky. These uncertainties around the design of the blockchain will make it hard to gain adoption by users, investors and enterprises.
It will be very difficult for a relatively new blockchain like Celes to obtain the interest of regulatory agencies. Why should regulatory agencies work together with the Celes Chain, when they have not yet reached final conclusions about the validity of significantly larger public blockchains such as Ethereum?
The Celes Chain white paper is not clear why the global financial regulatory institutions should use the Celes Chain for conducting their financial supervisory activities. Realistically the contrarian scenario which implies that this adoption by regulatory agency will not happen, must be considered as the much likelier one. The public sector and in particular regulatory agencies will be among the last adopters of blockchain technology. Private enterprises and consumers will most likely adopt this technology much earlier. Without this adoption the potential use cases of the Celes Chain are very restricted. Celes Chain has influential private investors, but ICO participants need to ask themself if this is enough for a successful ICO and later on a positive development of the token.
* The information contained in this article is for education purpose only and not financial advice. Do your own research before making any investment decisions.