Celo marks a new era in its blockchain development with the completion of its migration to an enhanced layer-2 network, offering faster and cheaper transactions on top of Ethereum’s mainnet.
The transition from Celo‘s layer-1 blockchain to an ‘Ethereum layer-2 chain’ has been completed, marking the end of a nearly two-year process. The main organizations behind the network have announced that the migration is now complete.
A Long Journey Begins in July 2023
The journey began back in July 2023, when Celo‘s layer-1 blockchain started exploring the possibility of becoming an ‘Ethereum layer-2 chain.’ This decision was made after a community vote in July 2024 and a fierce competition among layer-2 networks to convince the Celo ecosystem to build with their technology.
Faster and Cheaper Transactions
The improved network, like other layer 2s, offers faster and cheaper transactions on top of ‘Ethereum’s mainnet.’ The blockchain is powered by Optimism‘s OP Stack, a customizable framework that lets developers build layer-2 networks based off of Optimism‘s technology.
Layer 2 networks are a type of data transmission protocol that operates at the data link layer of the OSI model.
They provide efficient and reliable data transfer between devices on the same network.
Layer 2 protocols, such as Ethernet and Wi-Fi, enable seamless communication by encapsulating data packets in frames or access points.
This allows for faster data transfer rates and improved network performance.
Key features include error detection and correction, frame relay, and virtual LANs.
A Blueprint for Other Layer 1s
According to Rene Reisberg, the CEO of the Celo Foundation, the migration is the first of its kind in the ‘Ethereum ecosystem.’ It will probably be used as a blueprint for other EVM-compatible blockchains that are looking to become layer-2 networks. The team believes that this path will help maintain the history of the blockchain while having everyone on the new chain.
Increased Interest from Other Layer 1s
Rene Reisberg also mentioned that other layer 1 founders have shown increased interest in the transition process, asking about the challenges and work involved. This suggests that other layer 1s similar to Celo are watching the transition and considering moving into the layer-2 ecosystem.
Protocol-Level Changes
Despite the changes, end users of Celo won’t notice much of a difference in their setups. They will still be able to access key features like ‘SocialConnect,’ a protocol that connects users’ phone numbers or X handles to their Celo wallet addresses to make payments. However, there are some protocol-level changes, including:
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Validator responsibilities have evolved from operating the consensus protocol to temporarily running community RPC nodes.
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Validator rewards are now distributed via smart contract execution rather than at epoch blocks.
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Transaction sequencing will initially be handled by a centralized sequencer before transitioning to decentralized sequencing in the future.
A New Era for Celo
The completion of the migration marks a new era for the Celo blockchain. With its improved network and faster transactions, Celo is poised to become a more efficient and scalable blockchain. The team’s decision to use Optimism‘s OP Stack has also opened up new possibilities for developers and users alike.
Conclusion
In conclusion, the completion of Celo‘s migration to a layer-2 network marks an important milestone in the blockchain’s development. With its improved network and faster transactions, Celo is well-positioned to become a major player in the ‘Ethereum ecosystem.’
