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Celo Blockchain Considers Transition to Ethereum Layer-2

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Celo Blockchain Considers Transition to Ethereum Layer-2

  • Celo’s governance forum suggests using OP Stack as the architecture.
  • The switch would be beneficial since it would boost safety while keeping gas prices down.

By shifting from an independent EVM-compatible layer-1 blockchain to an Ethereum layer-2 solution, CLabs, the company behind the Celo blockchain, hopes to rejoin the Ethereum ecosystem.

A proposal discussed on Celo’s governance forum suggests using OP Stack as the architecture to become an Ethereum L2 blockchain. Thus “making it easy for Celo developers to utilize the full gambit of Ethereum tooling/libraries” by eliminating the need to track tooling and library composability through upgrades.

Beneficial Switch

Differentiating features include repurposing existing validators as decentralized sequencers for L2. As well as an off-chain data availability layer managed by Ethereum node operators and secured using restaked Ether (ETH).

The primary distinction between a Layer-1 blockchain and a Layer-2 blockchain is in their intended use. While Level 1 networks are intended to function without external assistance. Level 2 solutions are created to improve the efficiency of Level 1 blockchains.

It was said that the switch would be beneficial since it would boost safety while keeping gas prices down. Users wouldn’t notice any changes if the plan is accepted. And CELO token holders would retain voting power over the protocol’s fundamental agreements. CELO tokens may also be used to pay for gas.

The change may have unanticipated consequences for the Celo ecosystem, despite its apparent technical nature. According to the forum debate, this might pave the way for more liquidity between Celo and other chains, but it would also result in additional expenses for sequencers in the form of fees on the data availability layer and Ethereum gas. It is also not apparent whether the benefits for sequencers would be the same as the rewards for the present validators.

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