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- Celo’s governance forum proposes utilizing OP Stack as the framework.
- This transition could enhance security while maintaining low gas fees.
By transitioning from a standalone EVM-compatible layer-1 blockchain to an Ethereum layer-2 solution, CLabs, the organization behind the Celo blockchain, aims to reintegrate into the Ethereum ecosystem.
A proposal presented on Celo’s governance forum recommends adopting OP Stack as the framework to transform into an Ethereum L2 blockchain. This would facilitate Celo developers in leveraging the complete range of Ethereum tools and libraries by removing the necessity to monitor tooling and library compatibility through updates.
Advantageous Transition
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Notable features include repurposing current validators as decentralized sequencers for L2, along with an off-chain data availability layer overseen by Ethereum node operators and secured through restaked Ether (ETH).
The main difference between a Layer-1 blockchain and a Layer-2 blockchain lies in their intended applications. While Layer 1 networks are designed to operate independently, Layer 2 solutions are developed to enhance the performance of Layer 1 blockchains.
The transition is believed to be advantageous as it would enhance security while keeping gas costs low. Users would not experience any noticeable changes if the proposal is approved. Additionally, CELO token holders would maintain their voting rights regarding the protocol’s essential agreements. CELO tokens could also be utilized for gas payments.
Despite its seemingly technical nature, the change may have unforeseen effects on the Celo ecosystem. As per the forum discussion, this could lead to increased liquidity between Celo and other chains, but it may also incur additional costs for sequencers in the form of fees associated with the data availability layer and Ethereum gas. It remains unclear whether the incentives for sequencers would match the rewards currently received by validators.
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