Celo Wants To Transition To Ethereum Layer 2 In New Upgrade Proposal

Key Points:

• The Celo community is considering moving to an Ethereum Layer 2 solution, according to a new upgrade proposal by cLabs.
• The proposed upgrade aims to combine Ethereum’s Layer 2 ecosystem with Celo’s mission of prosperity, offering benefits such as enhanced security and developer experience.
• The migration would enable collaboration with the Ethereum community and maintain Celo’s low fees and 1-block finality.

The Celo community is considering a significant upgrade to its blockchain infrastructure by transitioning from an independent Layer 1 blockchain to an Ethereum Layer 2 solution, according to a proposal released by cLabs. This proposal comes after months of research and discussions among core Celo and Ethereum community members. The goal is to leverage the capabilities of Ethereum’s Layer 2 ecosystem while maintaining the platform’s mission of creating prosperity for all.

The proposed upgrade outlines a detailed architecture in which the Celo blockchain would become an Ethereum Layer 2 by initially leveraging the OP Stack. This approach offers several key differentiators, including a decentralized sequencer powered by Celo’s existing validator set running Byzantine Fault Tolerance (BFT) consensus. It also incorporates an off-chain data availability layer powered by EigenLayer and EigenDA, operated by Ethereum node operators and protected by restaked ETH. This design enables the platform to maintain its low fees while retaining its 1-block finality.

The transition from an EVM-compatible Layer 1 to an Ethereum Layer 2 solution would be a technical upgrade that does not impact the ecosystem’s mission. In fact, it is expected to accelerate the path towards that mission. The proposal emphasizes that the ecosystem will continue to foster a financially inclusive community and build openly in the spirit of Web3, bringing real-world use cases to the Ethereum ecosystem. At the same time, migrating to an Ethereum Layer 2 solution has the potential to enhance the scope and impact of the blockchain.

Some of the key benefits of this migration include further alignment with Ethereum and EVM compatibility, fostering a seamless developer experience. It also provides stronger security assurances compared to Celo’s individual security measures. Additionally, it offers a trustless bridge to Ethereum, simplifying liquidity sharing between Celo and Ethereum.

From a community standpoint, the proposed upgrade will not bring changes to existing decentralized applications (dApps) or mobile-first features such as SocialConnect. The growing regenerative finance (ReFi) stack will also remain unaffected. Importantly, the proposed changes will have immaterial impact on gas fees, which is crucial in achieving global financial prosperity and aligns with the core mission of the community. The validator community will continue to play a vital role in operating the network.

By implementing the proposed Layer 2 upgrade, cLabs expects several advantages. Firstly, it will facilitate increased cross-community collaboration between Celo and Ethereum. Celo’s technical roadmap has historically aligned closely with Ethereum, and this upgrade will provide an opportunity for even deeper collaboration on existing Ethereum Improvement Proposals (EIPs) and the introduction of new proposals. Secondly, the upgrade will enhance compatibility, making it easier for the platform developers to utilize the full range of Ethereum tooling and libraries. Thirdly, the migration will improve security by anchoring the state on the Ethereum mainnet while leveraging a decentralized source for data availability.

The community has been monitoring Ethereum’s progress, particularly the developments around Ethereum’s rollup-centric roadmap. This upgrade proposal reflects the community’s efforts to future-proof Celo by leveraging Ethereum’s advancements. It demonstrates the strong connection and overlap between the platform and Ethereum communities, both driven by a shared vision of building a fairer financial system on decentralized technology.

Overall, the proposed transition to an Ethereum Layer 2 solution signifies a significant step for Celo in aligning with Ethereum’s ecosystem. It aims to combine the strengths of both platforms to create a more inclusive and efficient blockchain infrastructure. The proposal outlines a clear path forward that balances technical considerations, community impact, and mission alignment, offering a promising future for the ecosystem.

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