Celo, the blockchain community launched in 2020, has formally transitioned from a layer-1 chain to an Ethereum layer-2 protocol.

Celo introduced the profitable transition in a March 26 X post, stating that “Celo is officially an Ethereum layer 2” protocol. In the thread, the group claimed the brand new protocol options one-second blocks, sub-cent transaction prices, and Tether’s USDt (USDT) and USDC (USDC) as gasoline.

Celo first proposed this transition in the summertime of 2023, and it’s now accomplished after block manufacturing on the outdated layer-1 platform halted and continued on the brand new community. The new platform is predicated on the OP know-how stack and an optimistic rollups implementation.

Related: Vitalik Buterin endorses Celo for beating Tron in stablecoin addresses

Optimism-based structure

Blockchain rollups are layer-2 scaling options designed to bundle a number of transactions off the principle blockchain, lowering congestion and reducing transaction charges. Optimistic rollups owe their identify to their assumption that offchain transactions are legitimate by default, solely resorting to fraud proofs throughout a problem interval if discrepancies are detected on the principle chain.

Marek Olszewski, CEO of Celo developer cLabs, informed Cointelegraph that “migrating to an Ethereum L2 enhances Celo’s security and scalability.” He added:

“Celo transactions at the moment are anchored to Ethereum, inheriting its battle-tested financial safety and decentralization. Celo L2 additionally presents one-second block instances and near-instant confirmations.“

Related: A beginner’s guide to understanding the layers of blockchain technology

Leveraging Ethereum’s community results

Irfan Shaik, founding father of rollup protocol Interstate, additionally acknowledged the change as optimistic for the protocol. He highlighted that Ethereum “has the greatest network effects of any chain,” including:

“Layer 1s with liquidity fragmentation can as a substitute faucet into the biggest pool of liquidity accessible, the ETH layer 1s.“

Olszewski additionally shared his enthusiasm over the transition to the OP tech stack, saying it permits for “deeper composability with Ethereum-native apps and protocols.” The new system can also be considerably simplified, with 365,000 fewer strains of code — lowering assault floor and, in response to him, resulting in a lighter, cleaner and quicker codebase.

He additionally highlighted that the improve preserved Celo’s close to five-year chain historical past and was carried out in a trustless method. The token was additionally moved to the Ethereum blockchain, which Olszewski identified ought to sensibly improve its liquidity. He defined:

“What this implies is that Celo turns into a fully-aligned Ethereum layer 2 — by structure, by ecosystem and by mission.“

Magazine: What are native rollups? Full guide to Ethereum’s latest innovation

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