CLabs, the company that developed the Celo blockchain, is looking to re-enter the Ethereum ecosystem. For this, it intends to switch to the Ethereum solution of layer 2 (layer-2). Faced with increased competitiveness between blockchains, CLabs intends to improve its services through this transition.
Celo blockchain offers a return to the Ethereum ecosystem
The transition could include using OP Stack’s architecture to become an Ethereum L2 (layer 2) blockchain. This would eliminate the need to control the composability of tools and libraries through updates. This technique makes it easier “for Celo developers to use the full range of Ethereum tools and libraries.” The transition would also include an off-chain data availability layer leveraged by Ethereum node operators. It will be protected by the restored Ether (ETH), as well as the transformation of current validators into decentralized sequencers for L2.
Also, the two types of blockchains (Layer 1 and Layer 2) differ in purpose, design, and architecture. L1 networks are designed to be independent. While L2 solutions simply aim to improve the performance of L1 blockchains, without being self-sufficient.
Transition to Layer 2 to strengthen security
The main benefit of this transition is the increased security it provides. In addition to safety, it keeps gas prices low. Indeed, CLabs does not foresee any significant change in gas charges. This proposal is due to be discussed on a governance call on July 21 before being released for a “temperature check” the following day.
This proposal would allow end users to remain unaffected by the migration. CELO token holders would then retain control of the base contracts by voting on governance proposals. CELO tokens will also be used to pay for gas. The transition is purely technical, but it could affect the Celo ecosystem in different ways.
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