The Celo blockchain has successfully implemented its long-anticipated transition to an Ethereum layer-2 chain, marking the culmination of nearly two years of planning and development. This milestone was announced by the primary entities behind the Celo network on Wednesday.
A Journey to Layer-2: Timeline and Transition
The migration process began in July 2023, following a community vote held in July 2024. Throughout this time, Celo faced intense competition from various layer-2 networks vying for its partnership. Ultimately, Optimism emerged victorious, winning the opportunity to support Celo’s transition with its advanced technology.
With this upgrade, Celo joins the ranks of other layer-2 solutions, providing users with faster and more affordable transactions while utilizing the Ethereum mainnet. The network is now powered by Optimism’s OP Stack, a versatile framework that allows developers to create customized layer-2 solutions based on Optimism’s technology.
Industry Insights from Celo Leadership
“Whenever people ask us for recommendations, we always suggest the OP Stack due to the exceptional support we receive from their team,” stated Marek Olszewski, CEO of cLabs, the principal development firm behind the Celo blockchain.
A Potential Blueprint for Other Blockchains
The migration marks a pioneering effort within the Ethereum ecosystem, as noted by Rene Reisberg, CEO of the Celo Foundation. He emphasized that this process could serve as a template for other EVM-compatible blockchains aspiring to transition into a layer-2 framework.
“This approach not only involves launching a new chain but also preserving the historical data and ensuring a seamless transition for all users. Although it demands significant work, it presents a tremendous opportunity for Celo and could become a valuable case study for Ethereum,” Reisberg elaborated in a recent interview.
He also highlighted the growing interest from founders of other layer-1 blockchains who are eager to learn about the ins and outs of the migration process. “I’m receiving inquiries from other L1 founders curious about the experience and the workload involved in such a transition,” Reisberg added.
Despite facing criticism from the community over the cumbersome interactions across multiple layer-2 solutions and the recent decline in ether (ETH) prices compared to other cryptocurrencies, Reisberg believes that other layer-1 networks are closely observing Celo’s transition and may consider similar moves to enter the layer-2 arena.
What’s Next for Celo Users?
Celo’s team assures users that the migration will not significantly alter their experience. Users can continue to access key features like SocialConnect, a protocol that links users’ phone numbers or X handles to their Celo wallet addresses for seamless payments. However, there are some notable protocol-level changes.
“The responsibilities of validators have shifted from operating the consensus protocol to temporarily managing community RPC nodes. Validator rewards will now be distributed through smart contract execution rather than at specific epoch blocks,” the team explained in a press release. “Moreover, transaction sequencing, which was previously managed by validators, will initially be handled by a centralized sequencer, with plans to transition to decentralized sequencing in the future.”
This significant migration sets the stage for Celo to thrive in the evolving blockchain landscape, paving the way for enhanced user experiences and greater interoperability within the Ethereum ecosystem.
