Celo Transforms into Ethereum Layer 2 Network

Celo, once an independent Layer 1 blockchain, has officially transitioned into an Ethereum Layer 2 network. The shift, which kicked off today on the mainnet, marks a significant evolution for the platform as it moves to enhance its capabilities while tapping into Ethereum’s robust ecosystem.

Migration to Layer 2 Begins

The process started when block production on Celo’s original Layer 1 network ceased, paving the way for its integration as a Layer 2 solution. CLabs, the primary developer behind the project, initially floated the idea of this transformation in July 2023. The goal is to harness Ethereum’s top-tier security while keeping Celo’s hallmark features—affordable transactions and rapid finality—intact. By aligning with Ethereum, Celo aims to overcome previous hurdles like scalability and interoperability that challenged its standalone status.

Built using Optimism’s OP Stack, a flexible toolkit, Celo now operates as an optimistic rollup. This upgrade brings native Ethereum bridging and slashes block times from five seconds to just one, boosting efficiency. Day-one collaborators include major players like Aave, Fireblocks, Uniswap, and Yellowcard, signaling strong industry support. Looking ahead, Celo’s current validators will take on the role of decentralized sequencers, ensuring the network retains its one-block finality.