The Celer State Guardian Network (SGN) has been an essential part of Celer Network’s architecture. In Celer’s layer-2 scaling architecture, the SGN is a specialized Proof-of-Stake (PoS) chain that serves the purposes of monitoring L1 transactions related to L2 state and faithfully passing layer-2 information back to layer-1 when needed.
In the Celer State Channel, the SGN helps store channel states and respond to malicious settlements on L1 when needed. In the Celer layer2.finance rollup chain, the SGN extends as a decentralized block producer network to pass call data and state roots back to the L1 blockchain and submit fraud-proof from any SGN node even when the entire PoS consensus fails.
CELR holders can stake their tokens into the SGN by becoming a validator or through delegation and actively provide the above-mentioned services. SGN participants receive staking rewards as well as fees in exchange for the services they help provide.