Celo Chooses OP Stack for Ethereum Migration, Eyes 2024 Testnet Launch

After nine months of careful consideration, the team behind Celo has selected OP Stack to transition to an Ethereum-based architecture.

This move was revealed in a recent forum announcement by cLabs, the software developers behind Celo.

They plan to put this decision to a community vote and aim to launch a Layer-2 testnet by the summer of 2024.

cLabs initially intended to transition to a Layer-2 network in July 2023, aiming to align more closely with Ethereum to leverage its robust capabilities.

Celo originally launched its main net on Earth Day 2020 with a strong focus on financial inclusivity and environmental sustainability.

The project secured substantial funding, raising $30 million in 2019 and an additional $20 million in 2021 to fuel its development.

Celo's original platform was built to support Ethereum smart contracts because it is compatible with the Ethereum Virtual Machine (EVM).

However, aligning with Ethereum's protocols, specifically the EIP-1559 which adjusts transaction fees, proved costly.

As Ethereum does, Celo made slight adjustments to this protocol, directing base fees to its community fund rather than burning them.

cLabs' CTO Marek Olszewski explained that maintaining this Ethereum compatibility was expensive and complex.

The move to OP Stack is seen as a strategic effort to remain closely integrated with Ethereum's evolving ecosystem while potentially reducing these compatibility costs.

The Layer-2 upgrade intends to retain critical features like one-block finality, which ensures rapid and secure transaction confirmations and protects against potential blockchain reorganizations.

Although Celo considered various technologies for this upgrade, including those offered by Arbitrum, Polygon, and zkSync, Optimism’s OP Stack was chosen.

This places Celo within the Superchain, a collective of Layer-2 solutions that share resources and benefits, including a revenue-sharing model in which 2.5% is paid to Optimism.

This affiliation with the Superchain is expected to foster positive-sum partnerships with other chains utilizing OP Stack, enhancing Celo’s integration into the broader blockchain ecosystem.

Noteworthy projects like Coinbase's Base and Worldcoin, supported by Sam Altman, have also adopted OP Stack, indicating its growing status as a preferred choice for Layer-2 solutions.

As Celo progresses with its migration, the choice of OP Stack underscores its commitment to scalability, efficiency, and enhanced cooperation within the cryptocurrency space.