cLabs, With The Support of Andreessen Horowitz (a16z), Has Put Forward a Proposal Outlining The Integration of Celo Into The Ethereum Layer 2 Ecosystem

The team behind the Celo blockchain, cLabs, has unveiled an ambitious proposal to transform its Layer 1 network into an Ethereum-based Layer 2 solution, a groundbreaking move that could significantly enhance security guarantees.

cLabs, With The Support of Andreessen Horowitz (a16z), Has Put Forward a Proposal Outlining The Integration of Celo Into The Ethereum Layer 2 Ecosystem

The proposal, published on the project’s governance forum, outlines Celo’s future version, which will adopt a Layer 2 roll-up model. This means that the network’s security proofs will be posted on the Ethereum mainnet to maintain a higher level of security. By doing so, Celo will leverage Ethereum’s security, providing stronger assurances compared to its standalone security.

To facilitate this transition, cLabs plans to utilize the OP Stack, a modular tooling offered by Optimism. This approach was previously successful when utilized by the prominent crypto exchange Coinbase for its own Layer 2 network, Base. As part of the Layer 2 architecture, cLabs intends to develop a decentralized sequencer that utilizes Celo’s existing validator set. This will ensure multiple entities can participate in securing the chain, enhancing its decentralization.

Furthermore, the team intends to leverage EigenDA, a data availability layer from the re-staking project EigenLayer. This integration is aimed at achieving lower storage fees for the network, providing an efficient and cost-effective solution.

About cLabs

cLabs, established in 2017 by Sepander Kamvar, Marek Olszewski, and Rene Reinsberg, is a prominent financial services company renowned for its innovative mobile financial platform called Celo. With headquarters in Berlin, Buenos Aires, and San Francisco, the company is under the leadership of CEO Tim Moreton.

About Celo

Celo, the brainchild of cLabs, was conceived in late 2017 as a mobile-first platform, revolutionizing the accessibility of financial decentralized applications (dApps) and cryptocurrency payments on any smartphone. The successful launch of Celo’s mainnet on April 22, 2020, marked a milestone in the blockchain industry.