• Celo’s move to Ethereum Layer-2 enhances scalability, reduces block times to 1 second, and introduces native Ethereum bridging while maintaining its hallmark low-cost transactions and rapid settlement times.
  • By aligning with Ethereum’s security and vast developer ecosystem, Celo aims to facilitate seamless asset and data flow between networks.

Celo, which was formerly a Layer 1 blockchain network has now transitioned to officially become an Ethereum Layer 2 network. The migration began earlier today, as Celo Layer 1 block production was halted and the network shifted to Layer 2 operations.

Core developer CLabs had already proposed this migration back in July 2023, while allowing Cello to leverage Ethereum’s robust security framework, and thus maintaining its hallmark features of low-cost transactions and rapid settlement times.

Additionally, the move aligns Celo more closely to Ethereum, while tapping into the vast developer ecosystem and addressing challenges like scalability and interoperability that Celo faced as an independent blockchain. Over the years, Celo has been building its Layer-2 infrastructure using the OP Stack, which is a customisable toolkit from Optimism. Thus, it effectively makes the Layer-2 platform a optimistic rollup.

Furthermore, the migration also introduces native Ethereum bridging while significantly reducing block times from 5 seconds to 1 second. Some of the key partners joining for the launch day are Fireblocks, Aave, Yellowcard, and Uniswap.

Looking ahead, Celo’s existing validators will serve as decentralized sequencers, ensuring the network retains its one-block finality while benefiting from the advantages of Ethereum Layer 2.

Celo Shares Larger Goal for Moving to Ethereum Layer 2

Migrating as an Ethereum Layer 2 network will allow Cello to facilitate a smoother flow of assets and data between the two networks, without the need for expensive and complicated bridges. Celo has teamed up with Alchemy, a leading developer platform renowned for its robust infrastructure. The partnership aims to empower developers to create more reliable and seamlessly connected applications.

As a result, the network has transitioned from being a standalone platform to becoming an integral part of the expansive Ethereum ecosystem. Despite this shift, it maintains its core principles of affordability, speed, and accessibility, as highlighted in our last news story.

In December 2024, Celo introduced the Celo Citizen Retro program, offering 250,000 CELO in funding for projects that have significantly contributed to strengthening the ecosystem and integrating crypto into daily life.

During the same month, CNF highlighted another noteworthy development: Band Protocol’s integration with Celo Alfajores, the network’s Layer 2 testnet. This integration enables real-time price data, benefiting DeFi, GameFi, and NFT applications that require precise and up-to-date information.

Band Protocol’s solution goes beyond estimates or outdated data, providing access to secure, real-time cross-chain price feeds, a valuable tool for the Celo ecosystem.