Celo has formally accomplished the transition from layer-1 blockchain to layer-2 protocol on Ethereum on March 26, 2025. The transfer was introduced by way of a publish on X, by which the platform highlighted the primary technical improvements.
Amongst these, blocks with a time of 1 second, transaction prices decrease than a cent, and using USDt (USDT) and USDC (USDC) as fuel stand out.
The choice emigrate to a layer-2 infrastructure was initially proposed in the summertime of 2023.
Now, with the conclusion of the method, block manufacturing on the unique layer-1 blockchain has been halted, permitting Celo to function completely on the brand new community based mostly on the OP tech stack and optimistic rollups.
This evolution goals to enhance scalability, safety, and compatibility with the Ethereum ecosystem.
Some great benefits of Celo’s transition to Layer-2 and the function of Ethereum
Optimistic rollups symbolize one of many foremost options for blockchain scalability. This mechanism aggregates a number of transactions exterior the primary chain to scale back congestion and decrease charges.
The operation is predicated on the idea that every one transactions are legitimate, except they’re challenged by a fraud proof.
Based on Marek Olszewski, CEO of cLabs, the developer of Celo, the migration to the brand new infrastructure includes vital enhancements.
He defined that Celo transactions now inherit the financial safety and decentralization of Ethereum, along with providing one-second block occasions and virtually instantaneous confirmations.
This integration with Optimism expertise drastically simplifies the code and optimizes community safety.
Olszewski highlighted how the brand new configuration allowed for the elimination of roughly 365,000 traces of code, decreasing the assault floor and contributing to a extra environment friendly, speedy, and safe codebase.
One of many foremost causes behind the choice emigrate to an Ethereum layer-2 is the opportunity of leveraging the benefits derived from the community results of the Ethereum blockchain.
The fondatore del protocollo di rollup Interstate, Irfan Shaik, highlighted that Ethereum presents the più grande pool di liquidità nel settore.
Blockchains that undergo from liquidity fragmentation, corresponding to different layer-1s, can drastically profit from connecting on to Ethereum’s liquidity.
Olszewski additionally emphasised that the transition to the OP tech stack will increase synergy with the Ethereum ecosystem, enhancing the composability between purposes and protocols.
Which means that Celo builders now have facilitated entry to instruments, assets, and established connections throughout the Ethereum universe.
A vital facet of the transition is the upkeep of Celo’s blockchain historical past, which covers virtually 5 years of exercise. All the things was carried out in a trustless method, sustaining the integrity and reliability of the community.
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Implications for the token and the way forward for Celo
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The conversion to a layer-2 additionally implies essential penalties for the token di Celo, which has now been transferred totally onto the Ethereum blockchain.
This considerably improves the liquidity of the token, making certain larger accessibility for traders and customers.
Based on Olszewski, this step strengthens Celo’s positioning throughout the Ethereum ecosystem, making certain full compatibility from a technological, financial, and operational perspective.
With larger interoperability, builders can now extra simply combine Celo with the primary DeFi protocols and dApps accessible on Ethereum.
In future phrases, this transformation opens up new potentialities for the adoption of Celo. The larger scalability and lowered prices make it extra engaging for customers and firms, facilitating using decentralized purposes based mostly on Ethereum.
With the help of Optimism’s infrastructure and entry to a broader blockchain economic system, Celo might place itself as a vital hub for scalable and decentralized purposes.
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Conclusion
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The choice to rework from a layer-1 blockchain to a layer-2 protocol on Ethereum represents a elementary step for the way forward for Celo.
Because of optimistic rollups, larger scalability, and the discount of transaction prices, the platform turns into a extra aggressive and sustainable possibility in the long run.
The mixing with Optimism and the Ethereum ecosystem enhances safety, ensures larger composability between protocols, and will increase the token’s liquidity.
This transition might mark a new part of development for Celo, consolidating its function inside decentralized finance and next-generation blockchain purposes.