Celo and cLabs Announces Migration to Ethereum Layer-2 with Optimistic Rollup Implementation

Celo is prepared to return to the Ethereum ecosystem and implement a hard fork of its blockchain into a rollup. The primary developer of the Celo blockchain, cLabs, intends to transition to an Ethereum layer-2 network utilizing the Optimism stack.

cLabs made this decision after conducting thorough research, engaging in initial discussions with stakeholders, and advancing technical development in rollups. The team officially announced this at the Ethereum Community Conference held in Paris.

According to cLabs, this migration offers a feasible path for Celo to achieve closer alignment with Ethereum, fostering trustless connectivity and leveraging its robust economic security.

In the proposed optimistic rollup model, transactions are processed off-chain initially and considered valid even before they are settled on the Ethereum mainnet. Settlements occur in batches, hence the term “optimistic.”

Additionally, cLabs plans to integrate EigenDA, a data availability layer obtained from the EigenLayer re-staking project, to lower network storage costs.

The team also aims to create a decentralized sequencer specifically designed for Celo’s existing validators, while the network’s native token will continue to be utilized for governance. CELO, originally an ERC-20 token on Ethereum, has experienced an 11% increase in market capitalization today, reaching $300 million.