Celo Migrates to Ethereum Layer-2, Enhancing Security and Network Efficiency

Celo has officially migrated from a Layer-1 blockchain to Ethereum Layer-2 using Optimism's OP Stack. The transition, finalized after 20 months of development

YEREVAN (CoinChapter.com) - Celo (CRYPTO: CELO) has officially migrated from a Layer-1 blockchain to Ethereum (CRYPTO: ETH) Layer-2 using Optimism’s OP Stack, it was announced on Wednesday.

The transition, which comes after 20 months of development, is set to increase security and network efficiency. The upgrade was completed at block height 31,056,500, confirming Celo’s full integration into Ethereum’s ecosystem.

The process began with Celo validators pausing block production on the original Layer-1 network. cLabs, the development team behind Celo, announced the start of the transition on X. Less than two hours later, the network resumed block production as a Layer-2 blockchain, with public RPC (Forno) and indexers becoming operational.

The official countdown website confirmed the update, stating:

“The Celo L2 migration has been successfully completed. Celo is now live as an Ethereum Layer 2.”

This marks a shift towards greater Ethereum interoperability while maintaining Celo’s low transaction fees.

Celo’s Ethereum Layer-2 migration reduces block production time to one second, a significant improvement from the previous five-second intervals. The integration leverages Ethereum’s infrastructure to enhance security and network resilience. Developers can now build on Celo’s Layer-2 network with minimal modifications.

The network will retain its low transaction fees of $0.0005, ensuring affordability for users. The transition to Ethereum Layer-2 also improves cross-network transactions by enabling native Ethereum bridging. This reduces dependence on third-party bridging solutions, which have been targets of past security vulnerabilities.

Celo’s Layer-2 upgrade makes it easier for Ethereum-based projects to operate within its ecosystem.

“This transition brings Celo closer to Ethereum’s existing developer environment, simplifying the integration process,” said Marek Olszewski, CEO of cLabs.

Following the migration, CELO’s price increased by nearly 4%, showcasing market interest. The upgrade is expected to improve liquidity and transaction efficiency, rendering the blockchain more appealing to users and developers. Trading volume spiked, with CELO reaching a local high of $0.4058 before encountering a minor pullback.

As more users opt for Layer-2 scaling solutions, Ethereum’s transaction fee revenue has dropped by 95%. The emergence of Ethereum Layer-2 networks like Celo has shifted traffic away from Ethereum’s main chain, leading to a decline in fee-based revenue.

Commenting on the development, Ethereum co-founder Vitalik Buterin said:

“Celo has done a lot for crypto’s global adoption, and I am excited to see Celo fully embracing the Ethereum family.”

Solana (CRYPTO: SOL) co-founder Anatoly Yakovenko recently raised questions about the necessity of Layer-2 solutions, arguing that a monolithic Layer-1 structure can provide sufficient scalability.

Yakovenko highlighted that Layer-1 blockchains can be “faster, cheaper, and more secure” without relying on fraud proofs or upgrade multisigs. He noted that Layer-2 solutions depend on external data availability stacks, which he described as “glacially moving” and quickly become a bottleneck.

suggesting that a well-designed Layer-1 can eliminate the need for complex Layer-2 mechanisms. His remarks contribute to ongoing industry debates about blockchain scalability and efficiency.

Meanwhile, Binance (CRYPTO: BNB) CEO Changpeng Zhao has reopened discussions on whether AI-focused blockchain projects should be built on Layer-1 or Layer-2 networks.

Zhao pointed out that while Layer-1 offers more sovereignty and decentralization, it also demands significant effort to maintain, including running nodes and validators.

“Having your own L1 feels like you have more sovereignty, but it’s also a lot more work,” Zhao stated.

In contrast, Layer-2 solutions reduce operational complexity by integrating with an existing blockchain like Ethereum, providing access to DEXs, liquidity pools, and established communities. Zhao questioned whether industry sentiment had shifted on this issue, adding, “Is L1 cooler than L2 or the reverse?” His comments highlight the ongoing discussion regarding the best blockchain infrastructure for AI projects.

The expansion of Ethereum Layer-2 networks has brought about a shift in the narrative surrounding blockchain scalability. Some developers are strong advocates for Layer-2 networks as a means to enhance security and mitigate congestion in existing blockchains. They suggest that pushing the boundaries of Layer-1 throughput may not be as efficient as integrating multiple Layer-2s with minimal hardware constraints.

However, others suggest that the focus should remain on improving Layer-1 performance. They argue that despite advancements in Layer-2 technology, they ultimately rely on the speed of the underlying Layer-1 chain, which ultimately limits the potential of Layer-2 networks.

In essence, the role of Layer-2 scaling in the future of blockchain