cLabs pioneers Celo as Optimism’s Ethereum Layer 2 solution
cLabs, the prominent developer behind the Celo blockchain, has unveiled its plans to transition its network to an Ethereum Layer 2 solution known as the OP Stack. The decision to adopt the OP Stack, an important development platform in the Optimism ecosystem, was made after receiving approval from the community in a governance vote last July. This move comes after an extensive eight-month evaluation of various scaling solutions, including Arbitrum Orbit, zkSync’s ZK Stack, and Polygon CDK.
OP Labs, a contributor to the Optimism ecosystem, offers the OP Stack to assist developers in creating customized Layer 2 blockchains. By migrating to the Optimism ecosystem, Celo aims to become integrated into the Superchain network, which includes chains like OP Mainnet and Base. This integration will enhance scalability and performance. The adoption of optimistic rollups within this ecosystem is expected to streamline the processing of Ethereum transactions, effectively addressing scalability concerns by consolidating transactions on a secondary layer.
The proposed improvements for Celo involve reducing block times from five seconds to two and increasing throughput by 50%. A testnet for the Celo Layer 2 is scheduled for launch in the summer of 2024, pending further approval from the community.
This adoption marks a significant transition for Celo (CELO), initially launched as a Layer 1 blockchain compatible with the Ethereum Virtual Machine. The network received $30 million in funding from major investors such as a16z and Polychain Capital in 2019, and an additional $20 million in 2021. Celo supports a wide range of applications, including established Ethereum dApps like Uniswap and Sushiswap, as well as Celo-native projects like Valora and UbeSwap.
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