Celo Blockchain Preps to Transition to Ethereum Layer-2 Network as Token Jumps Nearly 10%

CLabs, the developer behind the Celo blockchain, is currently eyeing a transition to the Ethereum ecosystem. The team proposed this via a Twitter announcement where it said that the decision comes after “months of research and initial discussions with Celo and Ethereum community members”.

Per the announcement, the proposal seeks for the Celo blockchain to transition from an independent layer-1 blockchain to an Ethereum layer-2 solution. However, a final decision will only be reached after the community votes on Saturday, July 22.

Celo Blockchain to See Massive Gains from Move, Experts Say

The Celo team appears to be in high spirits for the anticipated migration. According to a technical analysis of the proposed migration to the Ethereum ecosystem, the blockchain stands to gain a lot of benefits. That includes improved security, greater liquidity, as well as more compatibility among other things.

Meanwhile, the migration is expected to initially rely on Optimism’s OP Stack. And as it was appraised in a post on the Celo Forum:

“Migrating Celo to utilize the OP stack eliminates the need to monitor compatibility, making it easy for Celo developers to utilize the full gambit of Ethereum tooling/libraries.”

Besides, Celo already works well with the Ethereum Virtual Machine or EVM. So, as far as compatibility is concerned, Ethereum developers can simply just move their existing apps over. And if they want to create new ones, they can do so easily, using many of the same tools they are already familiar with.

CELO Token Surges

Meanwhile, CELO, the native token of the blockchain, has reacted positively to the announcement. Although that is not exactly unexpected.  Token surges are common when major upgrades such as this are about to take place. And as of publication, CELO has surged nearly 9.96% in the past week to reach $0.545. According to CoinMarketCap data, the token has gained more than 35% over the last month.

next