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Celo, initially launched as a layer-1 blockchain in 2020, has successfully transitioned to an Ethereum layer-2 (L2) protocol utilizing optimistic rollups. This migration aims to enhance scalability and security by anchoring Celo’s transactions to Ethereum’s robust infrastructure.
Optimism-Based Architecture
The new system employs the OP Stack, an open-source framework developed by Optimism, to implement optimistic rollups. This technology bundles multiple transactions off-chain, reducing congestion and lowering fees. Optimistic rollups assume transactions are valid by default, resorting to fraud proofs during a challenge period if discrepancies are detected.
Enhanced Features and Ecosystem Integration
With this upgrade, Celo now offers one-second block times, sub-cent transaction costs, and supports stablecoins like Tether’s USDT and USDC for gas fees. The transition also preserves Celo’s near five-year chain history and was executed in a trustless manner. This move is expected to increase liquidity and provide deeper composability with Ethereum-native applications and protocols.
