Celo Transitions to Ethereum L2 After Two Years of Proposal

Celo blockchain developers have officially finalized the transition to an Ethereum Layer 2 network, marking the end of a nearly two-year journey since the initial proposal. In July 2023, CLabs, the core team behind the project, first suggested moving Celo from its original Layer 1 chain to a Layer 2 solution.

Celo Moves to Ethereum L2 

The @Celo L2 upgrade countdown clock is up! Follow along on https://t.co/Trb41DglrJ pic.twitter.com/K2NtfTmmKM

— mareko.eth 🪨🪨🍴 (@marek_) March 26, 2025

The transition kicked off on the mainnet, with Celo halting Layer 1 block production and shifting operations to Layer 2. This move aims to enhance scalability and interoperability, addressing challenges Celo faced as an independent chain while also benefiting from Ethereum’s robust security and extensive developer ecosystem.

The Layer 2 upgrade leverages the OP Stack, a customizable toolkit from Optimism, positioning Celo as an optimistic rollup on Ethereum. This allows Celo to maintain its reputation for low-cost transactions and quick settlement times while utilizing the security of the Ethereum network.

As part of the migration, Celo’s block times have been significantly reduced, dropping from 5 seconds to just 1 second. Additionally, the transition brings native Ethereum bridging to the network. Celo’s day-one partners include major players like Aave, Fireblocks, Uniswap, and Yellowcard.

Looking ahead, Celo’s existing validators will take on the role of decentralized sequencers, ensuring the network’s one-block finality.

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