cLabs, the developer behind Celo blockchain, has introduced plans to transition the platform to be an Ethereum layer-2 community. The proposal, the developer mentioned, comes after intensive analysis and discussions throughout the Celo neighborhood.
The aim is to drive the adoption of blockchain, making it accessible to customers no matter their location. A notable function of Celo is its capacity to generate public keys from distinctive cellphone numbers, setting it aside from different networks.
The proposed transition, outlined in a complete structure proposal on July 15, goals to leverage the OP Stack to turn out to be an Ethereum layer-2 whereas retaining its distinctive options. In response to impartial Ethereum advisor Sassal.eth, this transition is now feasible as a result of present Ethereum blockchain infrastructure.
Celo Exploring Ethereum Layer-2
The migration, the group observes, aligns with the community’s mission of fostering international prosperity by way of inclusive monetary alternatives. By turning into a layer-2 platform, Celo intends to keep up its relationship with Ethereum by way of collaborative initiatives and the introduction of recent proposals. The improve additionally goals to boost person expertise, together with that of builders.
Turning into Ethereum layer-2 might introduce a number of enhancements. One would be the implementation of a decentralized sequencer, using Celo’s present validator set operating Byzantine Fault Tolerance (BFT) consensus.
Moreover, the platform plans to include EigenLayer, a middleware that permits protocols to leverage Ethereum’s safety and decentralization, together with EigenDA, an answer constructed on EigenLayer to boost information availability.
Safety can be a significant benefit of migrating to an Ethereum layer-2. Whereas the blockchain depends on a dynamic safety setup with round 110 validators elected by roughly 300 million locked CELO, the transition to layer-2 structure would additional improve safety by anchoring the state on the Ethereum mainnet. This may additionally doubtless enhance their fame as a safe platform.
The improve additionally improves compatibility with the Ethereum Digital Machine (EVM). Though Celo is already EVM-compatible, sustaining constant compatibility requires ongoing monitoring of instruments and backend processes.
Transferring to layer-2 eliminates the necessity for such monitoring, facilitates cross-community collaboration, and ensures low fuel charges. Builders will doubtless profit from extra accessible entry to Ethereum’s instruments and libraries. On the similar time, finish customers will expertise minimal adjustments and achieve the added safety offered by Ethereum’s financial safety.
Layer-2 Panorama On Ethereum
Ethereum layer-2s are discovering adoption due to their scalability and low fuel charges. With Celo’s plan to turn out to be a layer-2 platform with a decentralized sequencer, builders contemplating Arbitrum, Optimism, and different choices now have an extra alternative. In response to L2Beat, Arbitrum presently holds the very best whole worth locked (TVL) at $6.12 billion amongst layer-2 networks.
As of July 16, CELO costs have remained secure and have seen a 36% enhance from the lows in June 2023.
Characteristic picture from Canva, chart from TradingView