Celo developer cLabs proposes using OP Stack to launch Ethereum Layer 2 chain

cLabs, the core developer behind the Celo CELO +3.06% blockchain, has proposed building the anticipated Ethereum Layer-2 solution on the OP +5.04% Stack.

The move to migrate Celo from its current Layer 1 network to an Ethereum Layer 2 was confirmed after receiving community approval through a governance vote last July, marking a big change in the project’s evolution.

The team has now decided to develop its Layer 2 on the OP Stack, the primary toolkit for developing chains within the Optimism ecosystem. This followed an eight-month period of evaluation and testing of various scaling technologies and software packages, including Arbitrum Orbit , zkSync’s ZK Stack, and Polygon CDK .

OP Labs, the core contributor of the Optimism ecosystem, offers a development software stack known as the OP Stack, which enables developers to launch their own Layer 2 blockchains.

The firm plans the deployment of a testnet for the Celo Layer 2 in the summer of 2024, after another round of community voting.

The migration to the Optimism ecosystem will be a step towards integrating Celo into Optimism’s Superchain ecosystem that includes OP Mainnet, Base , Zora, Mode, and others. Worldcoin, the digital identity network founded by OpenAI’s Sam Altman, is also developing a Layer 2 network on the OP Stack.

OP Mainnet and other chains in the Optimism ecosystem use a scaling solution called optimistic rollups for operation. This technology aggregates Ethereum transactions on a secondary off-chain layer and allows for cheaper transaction processing to address scalability concerns on Ethereum.

cLabs stated in its proposal that Celo’s migration to OP Stack-based Layer 2 will focus on maintaining the network's distinctive features while improving its performance. Proposed improvements will include a reduction in block time from 5 seconds to 2 seconds and a 50% increase in throughput.

Celo is an Ethereum Virtual Machine-compatible blockchain that raised $30 million in 2019 from prominent venture firms like a16z and Polychain Capital. It closed another $20 million round in 2021. The network hosts a variety of applications, from popular Ethereum-based dApps like Uniswap and Sushiswap to native projects such as Valora , Mento, and UbeSwap.