Celo Developer cLabs Proposes Launch Of Its Ethereum Layer 2 Solution On Optimism’s OP Stack
In Brief
Developer behind the Celo blockchain, cLabs proposed building the Celo Ethereum Layer 2 solution on the Optimism’s OP Stack.
Developer behind the Celo blockchain, cLabs put forward a proposal to migrate Celo from Layer 1 network to a new Layer 2 solution built on Optimism’s OP Stack.
Celo highlighted that leveraging the OP Stack provides a straightforward path to deploy a Layer 2 solution without compromising the Celo community’s requirements.
Having the chance to build the Celo Layer 2 network on the OP Stack will uphold Celo’s distinctive attributes, such as maintaining the 1-block finality, low gas fees, and the utilization of ERC-20 tokens, such as Celo-native USDT and USDC, as gas currencies. Moreover, functionalities like sending money to a phone number or email address via SocialConnect will also be retained.
The decision to transition Celo from its existing Layer 1 network to an Ethereum Layer 2 was confirmed after obtaining community approval through a governance vote in the previous year. Subsequently, cLabs has been assessing and experimenting with various solutions such as Polygon CDK, Arbitrum Orbit, ZK Stack, and OP Stack.
Celo is a mobile-first, blockchain compatible with the Ethereum Virtual Machine (EVM). The project raised $30 million in funding in 2019 from leading venture capital firms such as a16z and Polychain Capital. Subsequently, it concluded another funding round of $20 million in 2021.
OP Labs Prepares For Celo Layer 2 Testnet Deployment
The primary contributor to the Optimism ecosystem, OP Labs provides developers with a development software stack called the OP Stack, facilitating the launch of their Layer 2 blockchains. The firm intends to deploy a testnet for the Celo Layer 2 during the summer of 2024, following another round of community voting.
This migration to the Optimism ecosystem represents a move towards integrating Celo into Optimism’s broader Superchain ecosystem, which includes OP Mainnet, Base, Zora, Mode, and other components.
OP Mainnet and other chains within the Optimism ecosystem utilize a scaling solution known as optimistic rollups for their operations. This technology aggregates Ethereum transactions on a secondary off-chain layer, enabling more cost-effective transaction processing to tackle scalability challenges on the Ethereum network.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
