- cLabs is planning to return Celo to the Ethereum network.
- The financial company calls for feedback on the proposed transition from the Celo community.
- Celo will leverage the OP Stack to become an Ethereum Layer 2 protocol.
Celo, the carbon-negative, permissionless, layer 1 blockchain for building innovative Web3 dapps, is returning to the Ethereum network. cLabs, the financial company behind Celo, has released a proposal in this regard, calling for feedback and discussion on the subject from the Celo community.
According to the proposal, cLabs plans to return Celo to Ethereum by “transitioning from an independent EVM-compatible Layer 1 blockchain to an Ethereum Layer 2.” By transitioning to Ethereum, Celo will leverage the OP Stack to become an Ethereum Layer 2 protocol.
The cLabs team explained that the transition would introduce significant differentiators. It mentioned differentiators like a decentralized sequencer powered by Celo’s existing validator set running Byzantine Fault Tolerance consensus. It also noted that the transition will enable an off-chain data availability layer powered by EigenLayer and EigenDA. Ethereum node operators will operate the availability layer which will be protected by restaked ETH.
According to cLabs, EigenDA brings the design of danksharding to Ethereum early and will enable Celo to maintain its low fees. The transition will also introduce a design that retains Celo’s 1-block finality.
cLabs explained to the Celo community that the migration process from an EVM-compatible L1 to an Ethereum L2 would be a technical upgrade that does not impact the Celo ecosystem’s mission to create conditions of prosperity for all. It noted that the proposed change would allow the Celo ecosystem to continue fostering a financially inclusive community and build openly in the spirit of Web3. It will also support the introduction of real-world use cases to the Ethereum ecosystem.
cLabs notified the Celo community of some of the benefits associated with the proposed migration. They include further Ethereum alignment and EVM compatibility that would foster a seamless developer experience. It will also enhance stronger security assurances than Celo provides individually and a trustless bridge to Ethereum that would simplify liquidity sharing between Celo and Ethereum.
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