Everything you need to know about Celo's migration to L2

Celo, the blockchain focused on financial inclusion, is taking a major step by migrating from its mainnet to a Layer 2 (L2) solution. This change will transform how users and applications interact with the network, improving scalability, reducing fees, and optimizing transaction efficiency.

In this article, we explore what this migration entails, its benefits, and its impact on the Celo ecosystem.

Celo is evolving from a Layer 1 (L1) Proof-of-Stake blockchain to an L2 solution based on OP Stack, in coordination with the Celo Foundation and CLabs.

What does this mean? Let’s look at the key changes following this migration:

• Transaction ordering: Previously, Celo validators managed both transaction ordering and data availability. Now, Ethereum will handle ordering, and EigenDA will manage data availability.
• Greater scalability and efficiency: The new architecture will provide a smoother user experience, with faster transactions and lower operational costs.

The Celo L2 network will consist of three main layers:

• Execution layer: Compatible with the Ethereum Virtual Machine (EVM), allowing Ethereum smart contracts to be deployed.
• Data availability layer: Uses EigenDA to ensure efficient access and lower costs.
• Settlement layer: Leverages Ethereum’s security for transaction finalization.

Additionally, the network will include:

• Sequencers: Process transactions and send blocks to Ethereum.
• Full nodes: Manage the blockchain state and verify data.
• Light clients: Designed for mobile applications, allowing interaction without storing the network's full state.

Celo's New L2 Architecture

Key technical changes

• Faster blocks: Now confirmed in 1 second, with a gas limit of 30M (previously 50M).
• CELO token: Will exist on both Celo and Ethereum, connected by a native bridge.
• Precompiles: All removed except for the transfer function.
• Transaction finalization: Will depend on the sequencer, batcher, proposer, and EigenDA, or on Ethereum.

Key dates for the migration

Celo's mainnet migration to L2 is scheduled for March 26, 2025, at 3:00 AM UTC, when block height reaches 31,056,500.

• Enhanced scalability: Celo will process more transactions without congestion, enabling dApps and smart contracts to operate faster and more efficiently.
• Lower fees: By processing transactions off the main layer, costs are reduced, making the network more accessible to users.
• Greater accessibility: Lower fees and better performance will allow more people to use Celo.
• Improved user experience: Smoother interactions with applications and services thanks to a faster, more cost-effective network, driving adoption.
• Rewards for validators and stakers: Fees will go to sequencers, but validators and stakers will continue receiving rewards, though in smaller amounts due to the reduced infrastructure requirements.
• Enhanced security: The native bridge ensures safer and more efficient transfers with Ethereum.
• Reduction of technical debt: 365,000 lines of code have been removed, improving agility and innovation.
• Ecosystem support: Celo will share sequencer revenue to support the growth of Optimism’s Superchain alongside networks like Base.

For developers, this migration presents a unique opportunity to build more efficient applications with lower operational costs. The improved scalability and speed will make Celo an attractive environment for innovation in DeFi, NFTs, and social impact applications.

Celo’s migration to Layer 2 reinforces its vision of an accessible, financially inclusive network with enhanced security and scalability through Ethereum. This shift opens new opportunities for DeFi, NFTs, and social impact applications. Whether you're already part of the ecosystem or looking to join, get ready for the migration on March 26—and support Celo’s potential as an L2 by staking CELO with Stakely!