CLabs, the organization behind the Celo blockchain, aims to rejoin the Ethereum ecosystem. They plans to shift from being an independent EVM-compatible layer-1 blockchain to adopting an Ethereum layer-2 solution.
This strategic move aims to harness the advantages of the OP Stack architecture. This innovative framework offers enhanced security and cost-efficiency compared to alternative layer-2 solutions.
CLabs proposes a multi-step transition plan. The first step involves establishing an off-chain data availability layer, which will be operated by Ethereum node operators and secured by staked Ether (ETH).
This layer serves as storage for Celo transactions and contracts, achieving the dual goal of preserving data integrity and ensuring minimal gas fees. Additionally, the current validators within the Celo network will transition into decentralized sequencers, thereby enhancing the functionality of the layer-2 solution.
These sequencers have the capability to order and execute transactions on the layer-2 network while also providing proofs to the data availability layer. Additionally, Celo’s core contracts will be migrated to the layer-2 network.
This migration will ensure that governance control remains with CELO token holders. The proposal will undergo discussion during a governance call scheduled on July 21. On July 22, they will make it available for a temperature check.
Celo Adopts Ethereum Layer-2: Streamlined User Experience & Developer Access
The transition to Ethereum layer-2 solution will have no impact on the functionality or user experience for end-users and CELO token holders. They can continue to use CELO tokens for gas payments and governance voting within the layer-2 network.
The transition, however, will provide Celo developers with improved access to the full range of Ethereum tools and libraries. This enhancement allows them to benefit from the security and scalability offered by the OP Stack architecture more efficiently.
The transition between Celo and other chains not only enables easier liquidity flow but also helps reduce gas costs compared to alternative layer-2 solutions. On the downside, there may be additional costs for sequencers during the transition.
They must pay fees on the data availability layer and gas on the Ethereum network. However, it is still unclear how this will impact their rewards compared to current validators.
Celo has been dedicated to enhancing its mobile experience and incorporating specific features to cater to the needs of developing economies. To further strengthen its capabilities, Celo aligns with Ethereum’s layer-2 solution while serving as a technological payment solution in these economies.
CLabs’ recent move in the competitive blockchain landscape showcases their dedication to innovation and recognition of the benefits offered by Ethereum’s layer-2 solutions.