Celo’s Transition to Layer-2 Network Marks a New Chapter for Blockchain

The long-anticipated plan for the Celo blockchain to become an Ethereum layer-2 chain has finally been accomplished. This conclusion follows almost two years of effort, as noted by the organizations behind this network.
The transition concludes a journey that started in July 2023, marked by a community vote in July 2024 and a notable competition. This contest was ultimately won by Optimism, a layer-2 network that managed to persuade the Celo ecosystem to adopt their technology.

The new network promises faster and cost-effective transactions on Ethereum’s mainnet, leveraging Optimism’s OP Stack — a flexible framework that enables developers to establish layer-2 networks utilizing Optimism’s tools.

A Model for Other Layer 1s

According to Rene Reisberg, Celo Foundation’s CEO, this migration is pioneering within the Ethereum ecosystem, likely serving as a model for other blockchains seeking to transition to layer-2 solutions. He expressed that such an approach not only establishes a new chain but also preserves the historical context of the existing system.

Despite ongoing challenges for Ethereum and the potential for other layer-1 chains to observe Celo’s transition, Reisberg remains optimistic about the future. He noted the growing interest from other foundational leaders in understanding the nuances of this process.

Celo end users are expected to see minimal changes in their experience, retaining access to essential features such as SocialConnect, which integrates users’ phone numbers and handles into their Celo wallets. However, there are crucial protocol-level updates that are underway.

For further information on this transition, please refer to the Celo Community’s announcement.