Previously launched as a layer 1 blockchain network, Celo has now joined the Ethereum ecosystem with it transiting into a layer 2 network. With the transition, Celo will expand its utility far beyond to numerous dApps.
The proposal to make Celo a layer 2 network was published long ago in July 2023 and it has now finally come to action with the blockchain now becoming a part of Ethereum’s wide ecosystem, which is valued over $455 billion with hundreds of dApps and projects.
In the announcement post, Celo said that it has now joined Ethereum’s shared roadmap which is now more focused on rollups & modular scalability. This migration has also helped Celo in expanding its presence in the crypto space.
“This migration was made possible by the cLabs engineers who worked tirelessly over 20+ months to preserve the state of the network while driving Celo into its winning era,” said Celo team, “ L1 validators preparing & upgrading their clients were essential to minimizing network downtime.”
Following the news, the price of CELO token has shows decent reaction while it has surged over 12% in the past 7 days. CELO price is currently trading near $0.4 – as per Coinmarketcap data.
Source – Coinmarketcap
The development of Celo’s layer 2 infrastructure is based on Optimism’s OP stack and it has also used EigenDA. This innovative approach will lead Celo to achieve nearly 1 second block time while enabling users to pay gas fees using tokens like USDT and USDC.
“Celo’s “return home to Ethereum” bridges the best of both worlds: Celo’s focus on real-world adoption and Ethereum’s incredible security, community, and network effects,” said Celo in an official release .
