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The Celo community is currently engaged in discussions and seeking feedback on a proposal that could potentially bring Celo back to its roots on the Ethereum blockchain. The proposal suggests transitioning from an independent EVM-compatible Layer 1 blockchain to an Ethereum Layer 2. This move, if implemented, would offer several key benefits and align Celo more closely with Ethereum’s ecosystem.

The proposal, formulated after extensive research by the cLabs team and initial discussions among core Celo and Ethereum community members, outlines an architecture that leverages the OP Stack to transform the Celo blockchain into an Ethereum Layer 2. This transition would introduce significant improvements while retaining Celo’s distinctive features and mission to foster prosperity for all.

Key differentiators of the proposed architecture include a decentralized sequencer powered by Celo’s existing validator set running Byzantine Fault Tolerance consensus. This ensures the robustness and security of the network. Additionally, the proposal suggests an off-chain data availability layer, powered by EigenLayer and EigenDA, operated by Ethereum node operators and protected by restaked ETH. This design brings the concept of danksharding to Ethereum early and enables Celo to maintain its low fees, a crucial aspect of its mission to achieve global financial prosperity.

The migration from an EVM-compatible Layer 1 to an Ethereum Layer 2 is considered a technical upgrade that will not disrupt the Celo ecosystem. On the contrary, it is expected to accelerate the ecosystem’s progress and bring real-world use cases to the Ethereum ecosystem. Migrating to an L2 solution offers benefits such as enhanced Ethereum alignment, fostering a seamless developer experience, and stronger security assurances compared to Celo’s individual capabilities. Additionally, it would establish a trustless bridge between Celo and Ethereum, simplifying liquidity sharing between the two networks.

The proposal assures the Celo community that existing dApps and mobile-first features will remain unchanged. Furthermore, gas fees, which play a vital role in achieving global financial prosperity, are expected to remain relatively unaffected. The Celo validator community will continue to play a key role in operating the network, ensuring a smooth transition.


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