Celo Completes Layer 2 Migration Using Optimism’s OP Stack
Celo, previously a standalone L1 blockchain, has officially become an L2 solution on Ethereum, giving users access to faster and more affordable transactions.
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The migration took nearly two years to complete, as the Celo community and developers worked to upgrade the network. The transition began in July 2023 and involved community voting and the selection of a suitable Layer 2 technology. Eventually, the community chose Optimism’s OP Stack, providing a framework for building L2 blockchains on Ethereum.
Notably, Celo launched in 2020 as a fork of Geth, fully compatible with the Ethereum Virtual Machine (EVM). Since then, it has developed into a broad ecosystem with more than 1,000 projects operating across various countries, 11 million active wallets, and over 720 million transactions.
One of the most prominent projects recently built on Celo is the stablecoin Tether (USDT).
Benefits and Technical Changes
The move to a Layer 2 blockchain offers users several key advantages:
- Increased transaction speed
- The option to pay fees using selected tokens
- Lower overall transaction costs
Marek Olszewski, CEO of cLabs, the main development company behind Celo, noted that the Optimism team provided significant support throughout every stage of the development process.
This path of not just spinning up a new chain, but actually maintaining that history, and having everyone be on the new chain, while it's a lot more work, is great from a Celo perspective. It's becoming this kind of great case study for Ethereum,
said Rene Reinsberg, the president at the Celo Foundation.
Although the architectural changes are barely noticeable for end users, they have brought significant adjustments for validators. For instance, fee distribution is now managed through smart contracts. In addition, during the initial phase, transaction ordering will be handled by a centralized sequencer. However, in the long term, the project plans to shift toward a more decentralized model.
Related: Celo Ecosystem Overview
Outlook
From a market standpoint, the transition to Layer 2 could become a significant milestone not only for Celo but also for other blockchains facing competition from L1s like Solana. In fact, some of these networks are already considering migrating to L2 solutions to improve efficiency and reduce costs. According to some analysts, steps like these may help certain blockchains regain their competitive edge.
The Celo development team has demonstrated that even large-scale changes can be achieved with a thoughtful approach and strong community backing. Ultimately, finalizing the move to an L2 blockchain signals the beginning of a new chapter in Celo's evolution, opening the door to greater performance, stronger security, and improved interoperability with other networks.
Related: What Is MegaETH: How It Plans to Outperform Other Layer 2s?
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