Celo Blockchain Suggests Switching To L2 And Returning To The Ethereum Ecosystem

By UseTheBitcoin July 17, 2023 In Blockchain, Celo, Ethereum

In order to convert Celo into an Ethereum L2 blockchain, cLabs claims that the transfer would include using OP Stack as the architecture.

By switching from an independent layer-1 EVM-compatible blockchain to an Ethereum layer-2 solution, CLabs, the company in charge of creating the Celo blockchain, aims to rejoin the Ethereum community.

The transition would involve using OP Stack as the architecture to become an Ethereum L2 blockchain, eliminating the need to monitor tooling and library composability through upgrades, and “making it easy for Celo developers to utilize the full gambit of Ethereum tooling/libraries,” according to a proposal discussion on Celo’s governance forum.

The conversion of present validators into decentralized sequencers for L2 and an off-chain data availability layer run by Ethereum node operators and secured by restaked Ether (ETH) are two more crucial differentiators.


Blockchains at Layers 1 and 2 have different uses, but they also differ in terms of architecture and design. While L1 networks are intended to function independently, L2 solutions are focused on improving the performance of L1 blockchains.

Increased security and low gas prices are said to be two advantages of the transition. “We don’t anticipate a significant change in petrol prices. Gas costs can be significantly cheaper than on other L2s because the idea is for an L2 solution with off-chain data availability, according to the proposal, which will be addressed on a governance call on July 21 before being made public for a “temperature check” the next day.

By approving the proposal, the move would not have an impact on end users, and holders of CELO tokens would continue to have influence over core contracts by casting votes on governance proposals. Additionally, gas will be paid for with CELO tokens.

The transformation may have many effects on the Celo ecology, although appearing to be merely technical. According to the forum debate, it may be possible to increase the flow of liquidity between Celo and other chains, but it may also result in higher expenses for sequencers, such as fees for the data availability layer and gas on Ethereum. It is also unknown whether the rewards for sequencers would be similar to those given to validators right now.

Due to the fierce competition among blockchains, Celo has been aiming to enhance its mobile experience by adding more functionality and specific features. The Celo ecosystem also aims at emerging nations, where there is a greater need for technologically advanced payment alternatives.

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