Celo has officially passed from a layer 1 Blockchain Compatible Autonomous EVM (L1) to an Ethereum Layer-2 (L2), marking an important step for the blockchain ecosystem.
The network first proposed migration two years ago, intended to improve safety, the use of real Ethereum and the experience of developers.
Celo migration to Ethereum layer 2
Celo finalized its migration on Wednesday to an Ethereum Layer-2 network, using OP OPTIMIM and EIGENDA battery for data availability.
The upgrade, which was completed at the height of block 31,056,500, strengthens the safety of Celo. It improves interoperability with Ethereum and maintains its characteristic features, such as low transaction costs and rapid processing times.
The official website of the Celo countdown confirmed the transition, announcing that Celo is now live as a layer Ethereum 2. This decision follows 20 months of planning, test and governance since its initial proposal for Clabs in July 2023.
“The Celo L2 migration has been successfully completed. Celo is now live as Ethereum Layer 2,” read the announcement.
The migration process began with Celo validators intentionally prohibiting block production on its L1 network. Clabs, the development of the Celo protocol, officially announced the start of the hard fork on X (Twitter).
He said Hardfork Celo L2 had started. The validators had intentionally interrupted the production of Celo L1 block while the protocol passed to an Ethereum 2 layer. Less than two hours later, the production of blocks resumed on Celo L2, with a public RPC (Forno) and indexers online shortly after.
Implications for users and developers
The passage to Ethereum Affan-2 provides significant advantages. Take advantage of Ethereum’s infrastructure improves the safety and strength of the network. The production of blocks occurs in a second instead of five, considerably increasing the transaction speeds.
Celo retains its ultra-low transaction costs of $ 0.0005, guaranteeing profitable transactions. The native ethereum bridge reduces dependence on external bridging solutions, which have always been vulnerable to exploits.
With this transition, Ethereum developers can rely transparently on the CELO with a minimum of adjustments, improving the compatibility of developers. Marek Olszewski, CEO and co-founder of Clabs, qualified the migration an exciting return for Celo, combining the best of the two networks to evolve web3 with Global Reach.
After the announcement, Celo’s price jumped almost four percent, reflecting market optimism about the decision.
However, this transition arrives at an intriguing moment for layers of layer 2. The Co-founder of Solana (ground), Anatoly Yakovenko, recently questioned the need for layer 2 solutions, declaring that the monolithic architecture of layer 1 of Solana is sufficient.
In addition, the founder of Binance, Changpeng Zhao, recently rekindled the debate on the construction of AI projects on layer 1 or layer 2. This highlights the current discussions on the best approaches to scaling blockchain.
Meanwhile, Ethereum experienced a 95% drop in transaction costs in the middle of the game 2 game fields. Users are increasingly adopting these solutions for lower costs and improving efficiency.
As Celo is fully integrated into Ethereum ecosystem, users and developers can expect increased liquidity, transparent transactions and improved security features.
“Celo has done a lot for the global adoption of crypto, and I am delighted to see Celo fully embracing the Ethereum family,” commented the co-founder Ethereum Vitalik Buterin.
However, the network must also prepare for a potential diversion of income for transaction costs far from the main Ethereum chain.
Celo’s ultra-basic costs are attractive, but ensure long-term network security and validators’ incentives remain a challenge. It may need to explore other sources of income, such as MEV capture (maximum extractable value) or strategic partnerships.
Despite the backlash against L2 Networks, Joanna Zeng, co-founder and CEO of Soon, an SVM Rollup on Ethereum, defends the L2.
“The L1 will not change their basic diapers, but they can always benefit from better scalability. Instead of arguing against the L2, the real opportunity is to prove the strength of SVM by extending beyond Solana,” Zeng told Beincrypto.
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