In a strategic move, cLabs, the prominent developer behind the Celo blockchain, has revealed its plans to transition the network to an Ethereum Layer 2 solution utilizing the OP Stack developed by Optimism.
The decision to embrace the OP Stack, a pivotal component of the Optimism ecosystem, was influenced by a community endorsement through a governance vote last July. This move follows an extensive eight-month review of various scaling solutions, including Arbitrum Orbit, zkSync’s ZK Stack, and Polygon CDK.
OP Labs, a key contributor to the Optimism ecosystem, offers the OP Stack as a tool to empower developers in creating customized Layer 2 blockchains.
The migration of Celo to the Optimism ecosystem aims to integrate it into the Superchain network, encompassing chains like OP Mainnet and Base. This integration is poised to enhance scalability and overall performance.
By leveraging optimistic rollups within this ecosystem, the objective is to streamline the processing of Ethereum transactions, effectively tackling scalability challenges by aggregating transactions on a secondary layer.
The proposed upgrades for Celo include a reduction in block times from five seconds to two, along with a 50% increase in throughput. A testnet for the Celo Layer 2 solution is slated for launch in the summer of 2024, subject to further community approval.
This adoption signifies a significant transition for Celo (CELO), originally introduced as a Layer 1 blockchain compatible with the Ethereum Virtual Machine.
Having secured $30 million in funding from major investors like a16z and Polychain Capital in 2019, followed by an additional $20 million in 2021, the network supports a diverse array of applications. These span from established Ethereum decentralized applications (dApps) such as Uniswap and Sushiswap to Celo-native projects like Valora and UbeSwap.
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