Key Takeaways:
- Celo is being changed over from an independent blockchain to an Ethereum Layer 2 solution for better scalability, lower fees, and enhanced security.
- All core contributors have onboarded with Coinbase Cloud as an Infrastructure provider & a contributor to a crypto ecosystem.
- By migrating, we will improve interoperability so that developers can use Ethereum’s liquidity and security, within Celo’s mobile-first, user friendly ecosystem.
- This step which is part of the general trend of migrating blockchain networks to Ethereum’s Layer 2 and bolsters Ethereum’s position as the primary platform for Web3 applications.
The Celo Community Takes a Big Bet on Ethereum Layer 2
Celo, a blockchain initially built for mobile-first payments and decentralized applications (dApps), is undergoing a transformative migration to an Ethereum Layer 2 solution. This move is anticipated to increase network efficiency, reduce transaction fees and make it more compatible with Ethereum’s DeFi ecosystem.
Celo L2 Mainnet Announcement
Role of Coinbase Cloud in the Transition Strategy
Coinbase Cloud has played a central role in helping to ensure a smooth migration, providing critical support across infrastructure, validator services, and security.
Why Coinbase Cloud Is Getting Involved?
- Validator and Network Security: Coinbase Cloud will help run and optimize Celo’s validator network to promote decentralization and security.
- Developer Support: Coinbase Cloud will offer a suite of infrastructure tools and APIs that will greatly enhance the development experience on the new Celo Layer 2.
- Institutional credibility: Coinbase Cloud’s support enhances confidence in Celo’s transition, attracting institutional investors and DeFi projects.
This partnership should drive adoption in the coming months — because developers and enterprises will have more assurance of the network’s stability and endurance.
Why Ethereum Layer 2? The Benefits of the Migration
Transitioning to Ethereum’s Layer 2 is not purely a technical improvement, but a strategic move designed to future-proof Celo’s ecosystem.
Benefits of Migrating to Ethereum Layer 2
- Cheap Transactions: Gas fees for transactions will be substantially lower than Ethereum’s mainnet, allowing for greater accessibility to DeFi and payments.
- Strengthened Security: As a Layer 2 solution of Ethereum, Celo will benefit from the strong security of Ethereum and lower the risk of hacks and attacks.
- Smooth DeFi Integration: Developers have the opportunity for building interfaces between Celo’s ecosystem and Ethereum-based DeFi protocols, allowing users to reach a wider variety of financial services.
- More Liquidity Access: As Ethereum has the largest liquidity pool in the crypto ecosystem, Celo’s dApps and assets will gain from larger market integration.
- Scalability for Mass Adoption: Celo will support thousands of transactions per second thanks to rollups and other Layer 2 solutions, which makesit an excellent candidate for real-world use cases.
Why This Change Is Good for Users and Developers
For Developers: More native integration with Ethereum = Faster development cycles + larger user base. They can take advantage of existing Ethereum tools but benefit from Celo’s cheap infrastructure.
For Users: Inexpensive, quick transactions will help unlock DeFi accessibility, making it more convenient for users, especially in mobile-first and emerging markets, to access funds.
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