Celo, a blockchain first established as a standalone layer-1 network, has officially transitioned to an Ethereum layer-2 solution.
Celo, a blockchain first established as a standalone layer-1 network, has officially transitioned to an Ethereum layer-2 solution. This significant shift, initiated earlier today, involves halting layer-1 block production, marking the start of Celo's migration to a layer-2 structure.
The proposal for this transition was put forth by CLabs, Celo's core development team, in July 2023. The transition aims to enhance Celo's scalability and interoperability by leveraging Ethereum's robust security and extensive developer ecosystem.
This move addresses challenges Celo faced as an independent blockchain, particularly in terms of transaction costs and speed.
With the adoption of the OP Stack, a customizable toolkit from Optimism, Celo now operates as an optimistic rollup. This change has reduced block times from five seconds to one second, improving transaction efficiency.
Celo has announced that its initial partners on this new platform include several prominent names in the blockchain space, such as Aave, Fireblocks, Uniswap and Yellowcard. The transition is expected to facilitate native Ethereum bridging capabilities for Celo, further enhancing its functionality within the broader Ethereum ecosystem.
Looking ahead, Celo's existing validators are set to function as decentralized sequencers, which will ensure the network maintains its one-block finality.
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