3. Oktober 2023

Celo Blockchain Set to Join Ethereum Ecosystem: Benefits of Transition to Layer-2 Technology

• Celo Blockchain announces transition from Layer-1 to Ethereum Layer-2 blockchain.
• Transition will leverage OP Stack as architecture, allowing Celo developers to utilize Ethereum tooling/libraries.
• Migration hopes to accelerate path toward financial inclusion and bring real-world use cases to the Ethereum ecosystem.

Celo Blockchain Set To Join Ethereum Ecosystem

Celo Blockchain has announced its decision to transition from a Layer-1 EVM compatible blockchain into an Ethereum Layer-2 solution. This move is set to enhance compatibility and reduce gas fees, while allowing Celo developers access to the full gamut of Ethereum tooling and libraries.

Difference Between Layer 1 and 2 Blockchains

Layer-1 blockchains are designed to function independently, whereas layer-2 blockchains are designed as an enhancement for existing layer-1 blockchains. Furthermore, an offchain data availability layer is protected by restaked Ether and validators become decentralized sequencers for layer-2 networks.

Advantages of Transition

The migration aims to accelerate the path towards financial inclusion by bringing real world use cases onto the Ethereum network. It is also hoped that this change will foster a financially inclusive community and build openly in the spirit of Web3 technology.

Aligning Technology With Ethereum

Researchers have observed that aligning closely with the technology of Ethereum would be a viable path for Celo’s development trajectory due its current reliance on it. The proposal concluded that this upgrade would not impact upon the core mission statement of creating conditions of prosperity for all due its potential enhancement of scope and impact within the Celo blockchain space.


In conclusion, transitioning from an independent EVM compatible Layer 1 blockchain into an Ethereum Layer 2 solution is likely beneficial for both parties involved – providing both financial inclusion benefits as well as improved performance characteristics such as reduced gas fees and enhanced compatibility with existing tooling/libraries used by developers on the platform.