BTC

$96413.835

-1.88%

ETH

$3353.339

-3.00%

XRP

$2.184

-4.03%

BNB

$693.822

-0.99%

News

Layer 2 Celo Will Integrate OP Stack Technology To Deploy On Ethereum

April 22, 2024 - Around 2 mins mins to read

Key Points:

  • Blockchain project focused on decentralized finance Celo announces plans to implement an Ethereum Layer 2 solution.
  • After an extensive evaluation period, cLabs selects the OP Stack within the Optimism ecosystem for Layer 2 Celo.
  • The move marks a significant shift for Celo, aiming to enhance accessibility to financial services globally.
Celo, the blockchain project dedicated to expanding decentralized finance accessibility through mobile platforms, has unveiled its strategy to implement an Ethereum Layer 2 solution.
Layer 2 Celo Will Integrate OP Stack Technology To Deploy On Ethereum

Read more: Top 5 Projects Are Using The Optimism OP Stack

Optimism’s OP Stack Selected for Layer 2 Celo

Following a meticulous eight-month evaluation period involving prominent scaling technologies like Arbitrum Orbit and zkSync’s ZK Stack, cLabs, the core developer behind Celo, has opted for the OP Stack within the Optimism ecosystem.

Last July, the community’s approval via a governance vote marked a pivotal moment, signaling Celo’s transition from its current Layer 1 network to Ethereum’s Layer 2. This shift aligns with Celo’s mission to empower users worldwide with simplified financial services, especially in underbanked regions.

Advancing Financial Inclusivity: Celo’s Strategic Shift

Choosing the OP Stack comes after thorough deliberation, where cLabs explored multiple options, including Polygon CDK, to ensure compatibility and long-term viability. Despite considering diverse solutions, the team circled back to their initial inclination toward the OP Stack, highlighting its alignment with Celo’s overarching objectives.

Originally focused on expanding access to decentralized finance via mobile phones, Layer 2 Celo aims to develop and deploy decentralized applications (dApps) and smart contracts, particularly targeting regions with low banking penetration.

By embracing Ethereum’s infrastructure, Layer 2 Celo anticipates synergistic benefits, such as enhanced EVM compatibility, fortified network security inherited from Ethereum, and streamlined cross-chain liquidity facilitation.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Celo

CLabs

Ethereum

Layer 2

Layer 2 Celo

OP Stack

optimism

Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.