•Celo Blockchain is transitioning from Layer-1 to Ethereum Layer-2 technology.
•The advantages of this transition include a material change in gas fee as well as enhanced compatibility.
•Migrating to an Ethereum L2 will not impact the Celo ecosystem’s mission and can potentially enhance its scope and impact.
Celo Blockchain Set to Join Ethereum Ecosystem
Celo Blockchain has announced that it is transitioning from Layer-1 to the Ethereum Layer-2 blockchain. The organization responsible for building the Celo blockchain, CLabs, has disclosed its decision to return to the Ethereum ecosystem making it move from an independent EVM-compatible layer-1 blockchain to an Ethereum layer-2 solution.
Advantages of Transitioning To Layer 2
Through this proposed change, the Celo ecosystem can 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, this proposal has the potential to substantially enhance the scope and impact of the Celo blockchain. Some advantages include a material change in gas fee as well as enhanced compatibility with tooling/libraries on Ethereum Network.
Differences Between Layer 1 & 2 Technology
It is important to note that Layer-1 and Layer-2 blockchains are quite different in design, architecture, and purpose. layer-1 blockchains are designed to be self-sufficient whereasLayer-2 blockchains are designed to enhance performances of Layer 1 instead of operating independently. Another important difference is off chain data availability layer operated by Ethereum node operators protected by restaked Ether in addition transforming validators into decentralized sequencers for Layers 2 .
Aligning With The Ethreum Ecosystem
The current decision is because Celo’s technology owes a lot to Ethereum which researchers have observed aligning closely with would be viable path .
Migrating from an EVM compatible L1to an Ethreum L 2 will be technical upgrade that does not impact on mission creating conditions prosperity for all but accelerate path towards it .