Celo has officially completed its transition from an EVM-compatible Layer-1 blockchain to an Ethereum Layer-2 solution, marking a significant milestone for the blockchain ecosystem. This long-anticipated move aims to enhance security, usability, and accessibility for developers while ensuring smoother integration with Ethereum’s infrastructure.
The transition was initially proposed nearly two years ago, with the primary objective of leveraging Ethereum’s security and scalability to optimize real-world applications. On Wednesday, Celo finalized the shift using EigenDA for data availability and Optimism’s OP Stack to maintain data accessibility. The upgrade, executed at block height 31,056,500, not only strengthens Celo’s security but also improves interoperability with Ethereum while retaining its core advantages, such as low transaction fees and fast processing speeds.
The official Celo countdown website confirmed the successful migration, stating that Celo is now live as an Ethereum Layer 2. The proposal was first introduced by cLabs in July 2023, and after nearly 20 months of rigorous planning, testing, and discussions, the transition was completed. Validators intentionally paused Celo’s Layer-1 block production to initiate the shift, and within two hours, Celo Layer 2 was generating blocks again. Shortly after, the public RPC (Forno) and indexers went live, solidifying the network’s new position.
The transition brings numerous benefits for both users and developers. By leveraging Ethereum’s infrastructure, Celo enhances its security and performance, with block production times reduced from five seconds to just one. Transaction fees remain exceptionally low at approximately $0.0005, maintaining affordability for users. Additionally, native Ethereum bridging minimizes reliance on external solutions, reducing security risks associated with past hacks.
For developers, this transition simplifies the process of building on Celo. Ethereum-based projects can now integrate seamlessly without requiring extensive modifications. Marek Olszewski, CEO and co-founder of cLabs, described the migration as a “homecoming” for Celo, emphasizing that it merges the best aspects of both networks to accelerate Web3 adoption and expand global reach.
Following the announcement, CELO’s price surged nearly four percent, reflecting market confidence in the move. However, this shift occurs at a time of ongoing debate regarding the necessity of Layer-2 solutions. Solana co-founder Anatoly Yakovenko recently questioned their relevance, arguing that Solana’s single-layer architecture provides sufficient scalability. Similarly, Binance founder Changpeng Zhao has sparked discussions on whether AI projects should be built on Layer 1 or Layer 2 networks.
Despite these debates, Layer-2 solutions are growing in popularity. Ethereum’s transaction fee revenue has dropped by 95% as more users and developers adopt these cost-effective and efficient networks. As Celo fully integrates with Ethereum, participants can expect improved liquidity, seamless transactions, and stronger security.
Ethereum co-founder Vitalik Buterin expressed his enthusiasm for the transition, stating, “Celo helped make crypto famous around the world, and I’m very happy that Celo is now joining the Ethereum family.” However, the network must remain adaptable, especially in the event that Ethereum’s primary chain removes transaction fees in the future.
By Alejandro Silva Ramírez, Crypto Analyst & Columnist