Celo Completes Migration to Ethereum Layer-2, Paving Way for Improved Scalability
26.03.2025 06:53
Celo has officially completed its migration to the Ethereum Layer-2 network after a nearly two-year process, marking a pivotal upgrade in its infrastructure. By integrating with Optimism’s OP Stack, the blockchain aims to deliver increased scalability, reduced transaction fees, and enhanced interoperability within the larger Ethereum ecosystem. The transition, initiated in July 2023 and backed by a community vote in July 2024, makes use of a series of distinctive protocol updates including a shift in validator operations and the redistribution of rewards via smart contracts. While validators now temporarily run community RPC nodes and transaction sorting is initially centralized, plans for decentralization are in place for the future. The move is seen as a potential blueprint for other EVM-compatible Layer-1 chains considering similar migration pathways, igniting interest among other blockchain founders. Core features like SocialConnect remain fully functional, ensuring that the user base and historical data of the network are preserved.
The completion of Celo’s migration to Ethereum Layer-2 is likely to have a positive impact on its price. In the short term, the news may trigger renewed investor interest as improved scalability and lower transaction fees become key selling points. Institutional investors and influencers might view the successful migration as a strong signal for future adoption, driving immediate upward momentum. In the longer term, the transition provides a robust upgrade to the network’s infrastructure, likely fostering increased usage and liquidity. Although some short-term uncertainties persist regarding changes in validator operations and the initial centralized transaction sorting mechanism, these are expected to transition smoothly to decentralized models, further boosting confidence over time. Historical trends from similar upgrades on other blockchains suggest that such technological advancements, when well-executed, typically contribute to sustained price appreciation.
Sources
Celo becomes Ethereum L2 with Optimism rollup implementation
Cointelegraph
26.03.2025 15:05
Celo Completes Ethereum Layer-2 Transition After 20 Months of Testing
Beincrypto
26.03.2025 06:48
Celo Completes Migration from Layer 1 to Ethereum Layer 2, Enhancing Security and Interoperability
Financefeeds
26.03.2025 06:57