Celo completes Layer-2 migration to Optimism

The Celo (CRYPTO:CELO) blockchain has finalised its transition to an Ethereum (CRYPTO:ETH) layer-2 network, concluding a nearly two-year process that began in July 2023.

The migration, powered by Optimism’s (CRYPTO:OP) OP Stack, positions Celo as a faster, cheaper alternative for transactions while maintaining compatibility with Ethereum’s ecosystem.

The shift followed a July 2024 community vote and a competitive bidding process, where Optimism emerged as the preferred partner.

“The team there has been so helpful and so supportive,” Marek Olszewski, CEO of cLabs (Celo’s core developer), praised, highlighting Optimism’s support.

Celo Foundation President Rene Reinsberg called the migration a “blueprint” for other Ethereum-compatible layer-1 blockchains considering similar transitions.

“This path of not just spinning up a new chain, but actually maintaining that history, is great from a Celo perspective,” he said.

The network now leverages Optimism’s infrastructure to reduce transaction costs and latency, though end users will retain access to features like SocialConnect, which links phone numbers or X handles to wallets.

Protocol-level changes include validator roles shifting to community RPC nodes and centralised sequencing, with plans for decentralisation later.

Reinsberg noted interest from other layer-1 founders seeking insights into Celo’s transition, signaling broader industry curiosity.

While Ethereum faces challenges like ETH’s lagging price and competition from Solana (CRYPTO:SOL), Celo’s move reflects a strategic bet on layer-2 scalability.

The migration underscores Optimism’s growing influence in Ethereum’s ecosystem, though Celo’s long-term success hinges on adoption and decentralised sequencing.

For now, the transition marks a pivotal step in blockchain evolution, blending legacy infrastructure with modern efficiency.

Whether Celo’s blueprint inspires other chains remains to be seen, but the project’s resilience through a complex migration highlights the sector’s adaptability.

As Reinsberg observed, “sentiment starts to shift” as layer-1s weigh similar paths—a trend that could reshape Ethereum’s landscape.

At the time of reporting, the Celo (CELO) price was $0.4015 and the Optimism (OP) price was $0.9259.