Celo blockchain proposes return to Ethereum ecosystem, transition to L2

CLabs, the enactment liable for processing the Celo blockchain, is seeking to instrumentality to the Ethereum ecosystem by transitioning from an autarkic EVM-compatible layer-1 blockchain to an Ethereum layer-2 solution. 

According to a connection treatment connected Celo's governance forum, the modulation would see leveraging OP Stack arsenic the architecture to go an Ethereum L2 blockchain, eliminating the request to show tooling and libraries composability done upgrades, frankincense "making it casual for Celo developers to utilize the afloat gambit of Ethereum tooling/libraries."

Other cardinal differentiating factors would see an off-chain information availability furniture operated by Ethereum node operators and protected by restaked Ether (ETH), on with transforming existent validators into decentralized sequencers for L2.

Layer-1 and Layer-2 blockchains disagree chiefly successful purpose, but besides successful their plan and architecture. While L1 networks are designed to beryllium self-sufficient, L2 solutions are aimed astatine enhancing the show of L1 blockchains alternatively than operating independently.

cLabs projected upgrade. Source: Celo's governance forum.

Benefits from the modulation would allegedly see accrued information portion maintaining debased state fees. "We expect nary worldly alteration of state fees. As the connection is for an L2 solution with off-chain information availability, state costs tin beryllium a batch little than connected different L2s," reads the proposal, scheduled to beryllium discussed connected a governance telephone connected July 21 earlier being released for a "temperature check" connected the pursuing day.

By adopting the proposal, end-users would not beryllium affected by the migration, and CELO token holders would clasp power implicit halfway contracts by voting connected governance proposals. Additionally, CELO tokens volition besides beryllium utilized to wage for gas.

Although the modulation seems purely technical, it whitethorn impact the Celo ecosystem successful antithetic ways. As per the forum discussion, it could perchance alteration much liquidity to travel betwixt Celo and different chains, but besides make other costs for sequencers, specified arsenic fees connected the information availability furniture and state connected Ethereum. In addition, it is besides unclear whether sequencers' rewards would lucifer with existent validators' rewards.

With blockchains becoming progressively competitive, Celo has been moving connected improving its mobile experience by incorporating accrued functionality and peculiar features. The Celo ecosystem is besides targeting processing economies, wherever much technological solutions for payments are successful demand.

Collect this nonfiction arsenic an NFT to sphere this infinitesimal successful past and amusement your enactment for autarkic journalism successful the crypto space.

Magazine: Here’s however Ethereum’s ZK-rollups tin go interoperable