Celo is transitioning from a standalone EVM-compatible Layer 1 blockchain to a Layer 2 powered by the OP Stack. After an eight-month evaluation, the OP Stack was chosen for Celo's migration due to its quick deployment capabilities, strong alignment with Ethereum's ecosystem, and support for positive-sum growth.
Technology:
The Celo Layer-2 testnet uses EigenDA as an alternative data availability layer to maintain sub-cent transaction fees. The Layer-2 architecture was developed to maintain Celo’s L1 benefits, which are already leveraged in over 150 countries. The migration maintains and improves low transaction fees and key elements, such as bridging WETH and ERC-20 tokens between Ethereum and Celo, decreasing block time from 5s to 2s, and increasing total throughput by 50%. It also preserves 1-block finality, CELO token duality, and fee abstraction.
Governance:
Celo's governance is decentralized, allowing CELO token holders to propose and vote on changes like protocol upgrades and funding. Decisions are made by majority vote
