Celo proposes upgrade to transition network to an Ethereum L2

July 17, 2023 11:00 PM AEST | By Invezz

Celo proposes upgrade to transition network to an Ethereum L2 — Image source: Invezz

Upgrade to boost Celo’s security and adoption

As an Ethereum L2, Celo will initially leverage the OP Stack, a modular open-source software that allows for the building of highly scalable and interoperable layer 2 blockchains. While the L2 solution will tap into Optimism’s modular software, it will have some key differentiators.

These will include a decentralised sequencer powered by Celo blockchain’s existing validator set; off-chain data availability and a design that retains the 1-block finality currently in use. The migration will integrate EigenLayer, a restaking provider.

According to Celo, the upgrade ties into the network’s Web3 vision and will benefit from greater security by inheriting Ethereum’s security features. The transition will also further Celo’s adoption via increased cross-community collaboration, enhanced compatibility and low gas fees as a result of off-chain data availability.

Celo will also benefit from more real-world use cases across thousands of dApps in the Ethereum ecosystem. Currently, the blockchain supports Uniswap, Sushiswap and UbeSwap among other decentralized applications.

No impact on CELO token holders

The proposed technical upgrade will not impact CELO holders, the team noted. This means native CELO will remain the governance tool for the ecosystem and holders will control both core contracts and validator set via governance vote, staking and election.

CELO traded at $0.57 on Monday morning, about 10% up in the past 24 hours and 18% in the past week. Year-to-date highs near $0.90 was reached in February. However, the token’s price remains more than 94% from its all-time high of $9.82 reached in August 2021.

The post Celo proposes upgrade to transition network to an Ethereum L2 appeared first on Invezz.

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