According to cLabs, the conversion of Celo to an Ethereum L2 blockchain would involve using OP Stack as the architecture.
The Celo blockchain’s creators, CLabs, are recommending a switch from an independent layer-1 blockchain to an Ethereum layer-2 solution. With this change, compatibility will be improved, and the robust Ethereum ecosystem will be utilized.
The idea is being discussed as a proposal on the governance forum for Celo, and it calls for using the OP Stack architecture for an Ethereum layer-2 blockchain. With this tactical change, developers of Celo would be able to use all of Ethereum’s tooling and libraries, speeding their development process.
Enhanced Security and Lower Gas Fees
It is anticipated that switching to an Ethereum layer-2 solution will boost security while keeping gas costs low. Celo intends to reconcile security and cost-effectiveness by utilizing an off-chain data availability layer that is managed by Ethereum node operators and protected by restaked Ether (ETH). The proposal underlines that compared to previous layer-2 networks, gas prices for this layer-2 solution may be much cheaper.
Although the technical shift might not immediately affect end users or holders of CELO tokens, there are several factors to take into account and potential consequences for the Celo ecosystem. According to the idea, integration might make it easier for money to move between Celo and other chains, improving interoperability. However, it may also introduce additional costs for sequencers, such as fees on the data availability layer and gas on Ethereum. The impact on sequencers’ rewards and incentives compared to the existing validators’ system remains unclear.
Driving Mobile Experience and Fostering Financial Inclusion
Celo keeps putting more effort into developing features and pursuing seamless integration with Ethereum while also enhancing the mobile experience. The Celo ecosystem focuses especially on developing nations where there is a rising need for cutting-edge payment options. Celo wants to have an influence in these areas by fusing technology development with a dedication to financial inclusion.
The Celo ecosystem is well-positioned to further solidify its linkages with Ethereum as the proposal advances through governance debates and community feedback, opening up new opportunities for developers and promoting wider adoption of blockchain technology.