Celo Blockchain to Transition to Ethereum Layer 2 with OP Stack

cLabs, the developer of the Celo blockchain, has announced its plan to transition the network to an Ethereum Layer 2 solution using the OP Stack. This decision follows a community endorsement in a governance vote last July and an extensive review of scaling solutions such as 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 custom Layer 2 blockchains. The migration to the Optimism ecosystem is intended to integrate Celo into the Superchain network, enhancing scalability and performance by adopting optimistic rollups.

The proposed enhancements for Celo include reducing block times from five seconds to two and increasing throughput by 50%. A testnet for the Celo Layer 2 is set to launch in the summer of 2024 pending community approval.

Celo, initially launched as a Layer 1 blockchain compatible with the Ethereum Virtual Machine, has received significant funding from investors like a16z and Polychain Capital. The network supports various applications, including established Ethereum dApps like Uniswap and native projects like Valora and UbeSwap.