Celo, initially launched as an independent EVM-compatible Layer 1 blockchain in 2020, has been a project with a mission to create financial prosperity for all by providing a platform for decentralized applications and services. However, the project has recognized the need to adapt and align more closely with Ethereum, given its shared vision and advancements in Layer 2 (L2) scaling solutions. Celo's decision to transition from an independent Layer 1 blockchain to an Ethereum Layer 2 represents a strategic move to harness the benefits of Ethereum's ecosystem and security while maintaining its distinctive features.

The proposed transition involves leveraging Ethereum's Optimistic Rollup (OP) stack and introducing innovations like a decentralized sequencer, off-chain data availability through EigenLayer and EigenDA, and maintaining Celo's signature 1-block finality. This shift to an Ethereum Layer 2 is expected to bring several advantages. Firstly, it fosters increased collaboration between the Celo and Ethereum communities, enhancing compatibility and security. Secondly, it streamlines development by allowing Celo developers to utilize Ethereum's tooling and libraries seamlessly. Additionally, this transition maintains low gas fees, ensuring that users and developers experience minimal disruption.

In summary, Celo's move from an independent Layer 1 blockchain to an Ethereum Layer 2 is a strategic decision driven by the desire to strengthen alignment with Ethereum and leverage its evolving Layer 2 stack. This transition promises enhanced collaboration, compatibility, security, and user experience while maintaining the core mission of promoting financial inclusivity and prosperity for all. Celo envisions this as a crucial step in continuously improving its technical foundation and expanding its role in the broader blockchain ecosystem, ultimately benefiting its community, developers, and users.

Gas Token: Celo