Celo Completes Transition to Ethereum Layer-2 Network After 20 Months
Celo has transitioned to an Ethereum Layer-2 (L2) network, completing its upgrade from a standalone Layer-1 (L1) blockchain. This development enhances Celo's speed, safety, and compatibility with Ethereum while maintaining low transaction costs.
- The transition was finalized at block height 31,056,500.
- Block production resumed in under two hours after pausing for migration.
- Celo's block time improved to one second from five seconds, allowing faster transaction confirmations.
- Transaction fees remain low at $0.0005.
- Developers can now integrate Celo more easily with Ethereum tools.
- Native Ethereum bridging is now part of Celo’s structure.
- Following the announcement, CELO price increased nearly 4%.
- Concerns arise about L2s' necessity versus well-built Layer-1 solutions.
- Ethereum's fee revenue has dropped by 95% as users migrate to cheaper networks like Celo.
- Celo must explore new income sources to sustain operations amid low fees.
Vitalik Buterin praised Celo's integration into the Ethereum ecosystem, indicating potential benefits for users and developers in terms of security and liquidity. However, the impact on Ethereum's main chain fee income remains to be seen.