Celo Proposes Migration From Layer 1 to Ethereum Layer 2 Protocol

By BeInCrypto July 18, 2023 In Celo, Ethereum

Layer 1 blockchain Celo has proposed to return to the Ethereum ecosystem as a Layer 2 protocol. But some community members are questioning the decision.

Ethereum, one of the most dominating Layer1 protocols, has enticed a competitor into serving as a Layer 2 protocol.

Celo Aims to Become Ethereum Layer 2 to Enhance Its Scope And Impact

The Ethereum Virtual Machine (EVM) compatible Layer 1 blockchain has announced a transition to Ethereum Layer 2, leveraging Optimism’s OP stack.

Read our detailed guide to learn the difference between Layer 1 and Layer 2 here.


With the Ethereum Layer 2 migration, Celo aims to improve the following:

  • Security
  • Real-world use-cases for Ethereum, and
  • Developer experience

Moreover, Celo plans to enable off-chain data availability through EigenLayer. At the same time, current validators would serve as decentralized sequencers.

Lastly, the team invited community members to participate in an in real-life (IRL) governance discussion call at Ethereum Community Conference (EthCC) in Paris. After the governance call, the team will release a “temperature check” on-chain governance proposal for voting on July 22.

Sudden Decision?

There has been excitement among community members at the migration proposal. Also, some Ethereum enthusiasts have celebrated the transition by saying, “Ethereum. There’s no second best.”

But Celo’s migration has also received criticism.

Recently, Celo joined Chainlink SCALE to help developers with low-cost Chainlink Oracle data and services. A community member feels there was no need to join Chainlink SCALE if the project were to migrate to Ethereum Layer 2.

They wrote:

If we are going to migrate to Ethereum L2, why did we accept Chainlink’s heavy conditions? There was no need for that.

This makes me think that this transition was a sudden decision. And it might indicate that the team hasn’t been very transparent about the reasons that make this L1>L2 transformation necessary.

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