The cLabs teams have sought the opinion of their governance on making Celo a layer 2 of Ethereum (ETH). Today autonomous, this blockchain could then become a scaling solution built in part on the technology of Optimism (OP).
Will the future of Celo play out as layer 2 of Ethereum?
Driven by a governance discussion initiated this weekend, the future of the Celo blockchain could well be written as layer 2 of Ethereum (ETH).
Currently the network is an independent layer 1 compatible with the Ethereum Virtual Machine (EVM), listing just under $100 million in total value locked (TVL) across the various decentralized finance (DeFi) protocols that make it up.
While layers 2 are scaling solutions taking more and more space in the debates, the cLabs teams believe that this transition would be beneficial for the blockchain :
“With 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 significantly improve the reach and impact of the Celo blockchain. »
👉 To go further — Find our sheet on the Celo ecosystem (CELO)
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The changes induced by this potential mutation
From the user’s point of view, such a change would have no real impacteverything would rather happen “on the technical side”.
For example, the network today is secured by 110 validators elected by more than 300 million CELO tokens. These validators would then become sequencers, whose role would be to publish the state of Celo on Ethereum. In addition, it would also have to run a layer 1 node, or at least connect to one of them, to access data from this blockchain.
To work, this layer 2 would be based in part on the technology of Optimism OP Stack.
In general, this proposal has, for the moment, been well received by the community, in particular through positive comments on the governance forum of the network:
“This is really great news and I can’t wait to hear more about the technical implementation. It’s also great to see Celo leading the way on the innovation front as well. An exciting and logical step for Celo! »
At the same time, the price of the CELO token benefited from a quite decent progression, up more than 14% since Saturday, the day when the debates on this part of the future of the blockchain were opened. To date, the asset has a capitalization of nearly $286 million and is ranked 127th in the CoinGecko ranking.
👉 Also in the news — Celsius case: ex-CEO Alex Mashinsky arrested for fraud and CEL manipulation
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Source: Celo
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I timidly discovered the world of blockchain at the end of 2018 during my quest for financial freedom. Initially invested moderately, it was only two years later that I took the gamble of betting everything on the movement that was taking shape then. I then dedicate 2021 to training myself better to acquire more knowledge and seriousness. As I often like to say: I still have a billion things to learn. And what I do know, I want to share with you.
Vincent Mayor
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