CLabs, the organization behind the development of the Celo blockchain, has announced its intention to transition from being an independent layer-1 blockchain to an Ethereum layer-2 solution. This move is aimed at returning to the Ethereum ecosystem and leveraging its benefits.
According to a proposal discussion on Celo’s governance forum, the transition would involve utilizing OP Stack as the architecture to become an Ethereum L2 blockchain. This change would eliminate the need to constantly monitor tooling and libraries composability through upgrades, thus making it easier for Celo developers to utilize the full range of Ethereum tooling and libraries.
One of the key differences between layer-1 and layer-2 blockchains is their purpose and design. Layer-1 networks are self-sufficient, while layer-2 solutions aim to enhance the performance of layer-1 blockchains rather than operating independently. By transitioning to an Ethereum L2 blockchain, Celo hopes to benefit from increased security while maintaining low gas fees for its users.
The proposed upgrade would also introduce an off-chain data availability layer operated by Ethereum node operators. This layer would be protected by restaked Ether (ETH), and Celo’s current validators would be transformed into decentralized sequencers for L2. These changes could potentially enable more liquidity to flow between Celo and other chains, but may also generate extra costs for sequencers.
The transition is currently in the proposal stage and is scheduled to be discussed on a governance call on July 21. After the discussion, it will be released for a “temperature check” on the following day. If adopted, end-users would not be affected by the migration, and CELO token holders would retain control over core contracts by voting on governance proposals. CELO tokens would also continue to be used for gas payments.
Celo has been actively working on improving its mobile experience and incorporating increased functionality and features. The platform aims to cater to developing economies where there is a demand for technological solutions for payments. By returning to the Ethereum ecosystem as an L2 solution, Celo can further enhance its offerings and expand its reach.
In conclusion, CLabs, the developer of Celo blockchain, is seeking to transition from an independent layer-1 blockchain to an Ethereum layer-2 solution. This move aims to leverage the benefits of the Ethereum ecosystem while maintaining low gas fees and increasing security. The proposed upgrade would introduce an off-chain data availability layer and transform current validators into decentralized sequencers. The transition is still in the proposal stage but could potentially enable more liquidity in the Celo ecosystem and provide a better mobile experience for users.
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