Leading developer of the Celo blockchain, cLabs, has declared that it would be utilizing the OP Stack to move its network to an Ethereum Layer 2 solution.
Following a community endorsement in a governance vote last July and an exhaustive eight-month assessment of many scaling options, including Arbitrum Orbit, zkSync’s ZK Stack, and Polygon CDK, the decision was made to embrace the OP Stack, a significant development platform inside the Optimism ecosystem.
As part of the Optimism ecosystem, OP Labs offers the OP Stack, which enables developers to design unique Layer 2 blockchains. Celo’s move to the Optimism ecosystem aims to improve scalability and performance by integrating it into the Superchain network, which includes chains like OP Mainnet and Base.
Optimistic rollups within this ecosystem address scalability concerns and enable more efficient processing of Ethereum transactions by combining transactions on a separate layer.
The suggested improvements for Celo include a 50% increase in throughput and a reduction in block times from five to two seconds. Subject to more community approval, the Celo Layer 2 testnet is expected to start in the summer of 2024.
This acceptance represents a significant change for Celo (CELO), which was first introduced as a Layer 1 blockchain that worked with the Ethereum Virtual Machine.
The network supports various applications, from well-known Ethereum dApps like Uniswap and Sushiswap to Celo-native projects like Valora and UbeSwap. It received $30 million in funding from prominent investors like a16z and Polychain Capital in 2019 and an additional $20 million in 2021.
