Celo returns home to Ethereum as layer 2, migration completed

Vitalik Buterin welcomed Celo’s deeper integration with Ethereum, praising its efforts to increase global crypto adoption.

Key Takeaways

• Celo has switched to Ethereum layer 2 after almost two years of work.
• The upgrade has reduced block times and integrated native bridging with Ethereum.

Celo has successfully transitioned from a standalone layer 1 blockchain to an Ethereum layer 2 platform using Optimism’s OP Stack and EigenDA for data availability.

The migration was finalized on March 26, with the activation of the Celo L2 Mainnet at block height 31056500, according to an update from celol2countdown.xyz. The Forno node service is now operational and ready to support the new L2 network.

In a statement celebrating the milestone, the Celo team noted that the move strengthens Celo’s technical capabilities, enhances interoperability with the Ethereum ecosystem, and maintains its hallmark features such as low transaction fees and fast processing times.

“Celo’s upgrade to an Ethereum layer 2 is a natural progression towards our Day 1 mission––to create the conditions of prosperity for all––and platforming a robust onchain economy for the future,” Rene Reinsberg, Celo co-founder and Celo Foundation President, said in a statement. “Leveraging Ethereum’s network infrastructure, Celo is enhancing security and interoperability for millions of daily users.”

The transition follows 20 months of planning, testing, and community governance since its initial proposal by cLabs in July 2023. The decision was driven by the need to simplify liquidity exchange with Ethereum, improve security, and improve developer compatibility.

“Migrating to a layer 2 marks an exciting return home for Celo, combining the best of the networks’ advantages to scale Web3 with global reach and continued impact,” said Marek Olszewski, CEO and co-founder of cLabs, the core developer of the Celo blockchain.

The upgrade brings Celo’s ecosystem of over 1,000 projects to the Ethereum network, signaling an influx of activity and innovation to the network. Despite the move, Celo retains its ultra-low fees of $0.0005 and rapid transaction speeds.

Key technical upgrades accompanying the migration include a 5-fold improvement in block times, dropping from 5 seconds to 1, and the implementation of native bridging with Ethereum. This bridge is touted as a critical security enhancement, reducing reliance on external bridging solutions that have proven vulnerable to exploits.

The platform maintains its core features, including SocialConnect for phone number-based payments and fee abstraction allowing users to pay transaction fees with ERC-20 tokens. The CELO token now exists natively on Ethereum, with layer 2 CELO representing bridged tokens.

Celo’s move to Ethereum could be a key driver in expanding the capabilities and adoption of its existing applications, including Opera’s MiniPay, Valora, and GainForest.

“Celo has done a lot for crypto’s global adoption, and I am excited to see Celo fully embracing the Ethereum family,” Ethereum co-founder Vitalik Buterin commented.

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