Celo developers finalize Ethereum Layer 2 transition, nearly two years after initial proposal

Celo, originally a standalone Layer 1 blockchain, has finally transitioned to an Ethereum Layer 2 network.The official transition began on the mainnet earlier today when Celo Layer 1 block production was halted, and the network started transitioning to Layer 2.CLabs, the project's core developer, first proposed Celo's shift from Layer 1 to a Layer 2 chain in July 2023.The goal was to align more closely with Ethereum, benefiting from its security and vast developer ecosystem while addressing challenges like scalability and interoperability that Celo faced as an independent chain.The development of the Layer 2 utilized the OP Stack, a customizable toolkit from Optimism. This means that Celo now functions as an optimistic rollup.This migration will leverage Ethereum's security while preserving Celo's low-cost transactions and fast settlement times.With this migration, Celo gains native Ethereum bridging, and its block times drop from 5 seconds to 1 second.Celo said its day-one partners include Aave, Fireblocks, Uniswap and Yellowcard, among others.In the future, Celo's existing validators will act as decentralized sequencers, maintaining its one-block finality.Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.