• Celo Blockchain has announced that it is transitioning from Layer-1 to Ethereum Layer-2 blockchain.
• The transition would leverage OP Stack as the architecture to remove the need for tooling monitoring and libraries composability via upgrades.
• Some advantages of this migration include enhanced compatibility, reduced gas fee, and more utilization of Ethereum tooling/libraries.
Celo Blockchain Transitions to Ethereum Layer-2
Celo Blockchain has announced its decision to return to the Ethereum ecosystem by transitioning from an independent EVM-compatible layer-1 blockchain to an Ethereum layer-2 solution.
Advantages of Transition
The transition would leverage OP Stack as the architecture to remove the need for tooling monitoring and libraries composability via upgrades. This move would make it “easy for Celo developers to utilize the full gambit of Ethereum tooling/libraries” according to a proposal discussion on Celo’s governance forum. Additionally, some advantages of this migration include enhanced compatibility, reduced gas fee, and more utilization of Ethereum tooling/libraries.
Differences Between Layer 1 & 2 Blockchains
It is important to note that there are significant differences between Layer-1 and Layer-2 blockchains in terms of design, architecture, and purpose. While layer-1 blockchains are designed to be self-sufficient, Layer-2 blockchains are designed with the intention of enhancing performances of layer 1 blockchains rather than operating independently. Moreover, offchain data availability layers operated by Ethereum node operators are protected by restaked Ether which also transforms validators into decentralized sequencers for layer 2.
Aligning Technology Closely With Ethereum
Researchers have observed that aligning technology closely with Ethereum would be a viable path as Celo’s technology owes a lot to ethereum. Furthermore, through this proposed change according CLabs report; “the Celo ecosystem can continue foster financial inclusion community and bring real world use cases into the ethereum ecosystem while enhancing scope and impact of their own blockchain”.