Celo Proposes to Ditch Own Standalone Blockchain for Layer-2 Network on Ethereum
The development team behind the independent Celo blockchain says benefits could accrue from transitioning to the Ethereum ecosystem, in terms of greater liquidity, improved security and more compatibility.
CLabs, the developer behind the Celo blockchain, are proposing to transition from an independent layer-1 blockchain to an Ethereum layer-2 solution.
The team the proposed move over the weekend on Twitter.
The existential change could simplify liquidity sharing between Celo and Ethereum while boosting security and facilitating a seamless developer experience, according to the post. Celo already runs the Ethereum Virtual Machine, which means it supports smart contracts in a language similar to what Ethereum developers use to write code.
Ethereum currently has over $26 billion total value locked and Celo has around $99 million, according to from DefiLlama.
Celo is proposing to use EigenLayer’s EigenDA for off-chain . EigenDA is operated by Ethereum node operators.
“Using an off-chain data availability solution like EigenDA would prevent a steep increase in Celo transaction fees in a way that contributes to Ethereum,” said the blogpost.
CELO, the native token of the blockchain, jumped almost 10% on Monday, reaching a two-week high of $0.59. The token has gained just under 45% over the last month.
None other than Vitalik Buterin, founder of Ethereum, weighed in on cLabs’ , writing “Amazing, and excited to see this!,” and he offered some technical suggestions to consider.
“Would love to see the Celo ecosystem come closer to Ethereum,” Buterin wrote.
Celo has seen its transaction growth increase substantially over the past few months, according to from Dune analytics.
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