Celo is a mobile-first, carbon-negative blockchain ecosystem that is specially designed to make decentralized finance (DeFi) tools and cryptocurrency payment accessible to anyone with a smartphone. It features a native asset called CELO and stablecoins like uCSD and eEUR. CELO prioritizes accessibility for smartphone users, aiming to simplify blockchain interactions and make them user-friendly.
It is an open-source project, meaning its code is publicly available for anyone to review and contribute to. It is also permissionless, and anyone can participate in the network without requiring permission from a central authority. Celo is transitioning from its standalone Layer 1 (L1) blockchain to a Layer 2 (L2) solution on Ethereum.
It aims to leverage Ethereum’s security and scalability while maintaining Celo’s focus on mobile-first, financing inclusion, and low transaction fees. Celo L2 Mainnet is Celo’s upcoming move to an Ethereum L2 that features fast, low-cost transactions for a smooth user experience. This article will further discuss the Celo L2 Mainnet announcement, so keep reading to learn more.
Overview of the Celo L2 Mainnet Announcement
The Celo L2 Mainnet date is due on March 26, 2025, at 3:00 AM UTC. Celo was designed to enable a new universe of financial solutions that creates a global financial ecosystem accessible to mobile users. Celo makes sending money as easy as sending a text and this platform supports the growth and development of the Celo blockchain and ecosystem.
Note that CELO holders are eligible to earn rewards, vote on proposals, and stake with validators. Celo is currently operating two Layer 2 testnets, Baklava and Alfajores, both of which have been successfully migrated from Layer 1. It is transitioning to Ethereum Layer 2 and this shift is to maintain a seamless user experience that CELO is known for.
The platform is characterized by speed, low costs, and ease of use and leverages Ethereum’s security and ecosystem. It is because of this transition that Celo is currently operating a Layer 2 testnet, launched on September 26, 2024. This evolution of Celo marks a significant milestone in its relationship with the Ethereum ecosystem. Even though Celo has always maintained close ties with Ethereum, sharing a commitment to security, innovation, and decentralization, Celo strengthens this bond with the transition.
This allows developers and protocols to immerse themselves even deeper into the collaborative and vibrant Ethereum community. Also, this integration enhances opportunities for open-source contributions, development of public goods, and joint initiatives, ensuring Celo’s impact resonates widely in the blockchain ecosystem.
Celo L2 Mainnet expected launch
Celo is to officially become an Ethereum Layer 2 network on March 26 at 3:00 AM UTC. The mainnet activation is likely to occur at a hard fork block height of 31,057,000, initiating the network’s operation as an Ethereum Layer 2. After the upgrade, the block time is expected to be shortened from 5 seconds to 1 second, while retaining the complete on-chain history, which ensures network transparency.
Also, this upgrade reduced 365,000 lines of code, supports trustless upgrades, and lowers the technical burden. This ultimately makes node operations more efficient. Celo’s transition brings substantial changes in the technical field as well. Bridging between Celo and Ethereum was made possible, and this advancement enhances the security of token transfers by significantly reducing reliance on external bridges.
This native bridging also reduces vulnerability and offers a more secure and streamlined experience for users. It ensures the transactions within the ecosystem are safe and reliable.
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Conclusion
Celo is taking a major step in migrating from its mainnet to a Layer 2 (L2) solution, and this change is said to transform how users and applications interact with the network. It also impacts optimizing transaction efficiency, improving scalability, and reducing fees. The upgrade of Celo to L2 means that it is evolving from a Layer (L1) Proof-of-Stake blockchain to an L2 solution based on OP Stack.
While Celo validators managed both transaction ordering and data availability earlier, Ethereum now handles orders, and EigenDA manages data availability. Also, the new architecture will provide a smoother user experience, with faster transactions and lower operational costs. This upgrade offers several benefits, including enhanced scalability, improved user experience, ecosystem support, lower fees, greater accessibility, better security, reduced technical debt, and rewards for validators and stakers.