Celo Transition to Ethereum Layer 2 Network Completed

• Celo integration with Ethereum to enhance security and efficiency.
• Decreasing block time on Celo boosts transactions.
• Strategic partnerships support Celo’s new phase.

The Celo network, initially established as a standalone Layer 1 blockchain, has today completed its transition to become a Layer 2 network, integrating with the Ethereum ecosystem. The transition process began with the cessation of Celo Layer 1 block production, marking the beginning of its migration to the advanced Layer 2 framework.

🏡 @Ethereum , we're home!

Following a successful "hard hard fork" led by core contributors at @cLabs L1 validators, Celo is officially an Ethereum Layer 2 🪨 🪨 🍴

What does that mean for the diverse, global decentralized ecosystem? Keep reading to find out ↓ pic.twitter.com/slW1W5oRmP

— Celo.eth 🦇 🌳 (@Celo) March 26, 2025

The change was first proposed by CLabs, Celo’s core development team, in July 2023. The goal of this initiative is to integrate Ethereum’s enhanced security while maintaining the low costs and fast settlements that Celo has always provided.

The strategy aims to incorporate the advantages of Ethereum, such as its robust security and broad developer ecosystem, while solving problems faced by Celo as an independent blockchain, such as scalability and interoperability.

To make this transition, Celo adopted the OP Stack, a customizable toolkit developed by the Optimism project, transforming Celo into an optimistic rollup. With this update, block processing times on Celo have been drastically reduced, from 5 seconds to just 1 second.

The migration also included the implementation of a native bridge to Ethereum, strengthening Celo’s connections to the major network. Celo announced that “day one partners include Aave, Fireblocks, Uniswap and Yellowcard,” demonstrating strong community support.

In the new arrangement, former Celo validators will take on the role of decentralized sequencers, a crucial function for maintaining the integrity and finality of blocks in the new architecture.