What happened?
Celo has successfully transitioned to an Ethereum Layer-2 network using Optimism’s OP Stack and EigenDA, marking its evolution from an independent blockchain to an interoperable network. This move brings Celo back into the Ethereum ecosystem with enhanced capabilities. As part of this transition, the Celo Layer 1 client has been deactivated, and a new Layer 2 client is now operational.
Who does this affect?
This transition impacts developers and users within the Celo ecosystem, including over 1,000 projects that are now integrated into the Ethereum network. Popular infrastructure projects like Uniswap, Curve, Chainlink, and Aave are part of this migration. Additionally, node providers, RPC services, and exchanges have rapidly adapted to support this change, enhancing the network experience for users.
Why does this matter?
The migration to Ethereum Layer-2 is significant as it enhances security, scalability, and interoperability for Celo, which in turn could affect market dynamics by attracting more users and developers to the network. The lower transaction fees and improved transaction speeds could increase the adoption of decentralized finance (DeFi) applications on Celo. Furthermore, Celo’s focus on sustainability and carbon offsetting aligns with growing market trends toward eco-friendly blockchain solutions.