The Celo community appeared proposing to make this blockchain a layer-2 on Ethereum, using the technology of Optimism.
According to a proposal posted on the Celo forum on July 15, the cLabs development team wishes to transition Celo back to being a layer-2 on Ethereum, rather than continuing to exist as a blockchain layer. -1 independent.
cLabs claims to have spent the past several months researching and having discussions with Ethereum community members for the proposal to become layer-2, with key changes including:
– Use Optimism’s OP Stack platform to make layer-2 – similar to Base and Zora Network.
– The transaction processor (sequencer) at Celo, with the Byzantine Fault Tolerance consensus mechanism.
– The off-chain data availability layer will use EigenLayer’s EigenDA solution to participate in ETH restacking while ensuring security and helping Celo maintain low transaction fees.
Celo claims to have been following Ethereum for a long time and is very interested in the second largest blockchain’s important innovations in solving the problem of scaling, firstly promoting multi-layer-2 construction to minimize the risk of scalability the main blockchain, and then doing upgrades like dank sharding to increase the processing power of Ethereum itself.
Becoming layer-2 on Ethereum will bring significant benefits such as:
– Reinforces Ethereum’s development direction and EVM compatibility, promising a seamless development environment.
– Take advantage of the high level of security of the Ethereum network.
– Simplify the process of transferring values between two chains.
cLbas asserts that converting Celo from layer-1 to layer-2 will not affect the original mission of the project, which was to provide access to blockchain advancements for all users around the world. From the perspective of the developer community and users, the above change is not too big and does not affect the user experience and deployed dApps.
The CELO token will continue to be the main coin of the blockchain, maintaining the functionality of paying transaction fees, staking, and governance on Celo.
cLabs proposes that the community conduct a poll to poll support the proposal to make Celo layer-2 on Ethereum on July 22. If approved, the development team will begin to prepare the technical elements, then implement the upgrade through a hard fork in the future.
Celo is a blockchain deployed in 2020, using a Proof-of-Stake consensus mechanism to minimize environmental impact. During the bull market period in 2021, the value of locked down (TVL) on the Celo network peaked at over $1 billion. However, after a year and a half, this figure is now only $ 91 million.
The CELO price was active at the time cLabs’ proposal was posted but has yet to return the coin back to the highs of early July.
4h chart of CELO/USDT pair on Binance exchange at 12:40 PM on 16/07/2023:
