Celo’s L2 Quest: Evaluating Tech Providers for Ethereum Boost

On Nov 30, 2023

Source: Tobias Arhelger – Shutterstock

The lead developer of the Celo blockchain has published a “Framework for selecting an L2 stack” amidst intense competition.
The community voted to move to a more dominant and fast-growing Ethereum ecosystem with the community now set to choose a a technology provider for its new layer-2 network.

The Celo blockchain is moving forward with plans to migrate to a dominant and fast-growing Ethereum ecosystem. Ahead of the upcoming migration, the blockchain’s primary developer, cLabs, has published a proposed framework for selecting a layer two technology provider. The guideline dubbed “a “Framework for selecting an L2 stack” seeks to facilitate the selection of a layer-2 technology provider.

Competition is high between layer-2 technology providers like Optimism, Polygon, and Matter Labs, fighting to integrate with the Celo blockchain for greater adoption and success of the two networks.

Related: Breaking: Celo Blockchain Set to Join Ethereum Ecosystem with Transition to Layer-2 Technology

The team is now calling on the community to participate in discussions to help build and incorporate the common consensus of the whole community. The team adds;

Note that we are selecting codebases and sub-components here, so we feel it is less useful to directly compare metrics like TVL, transaction count, users, except as indicators of what a closer collaboration and/or shared bridge between the two ecosystems could look like in future. This exercise is not to select a “best L2 stack”: it’s to figure out which is the best fit for the specific technical and non-technical needs of the Celo L2 project.

The team has indicated that it’s looking to deliver CEL2 as soon as possible, minimizing implementation risk. It further notes it will “favor projects that have been audited and deployed and proven in production, vs. projects whose designs are subject to ongoing change or whose implementations are not yet proven.”

It further highlights that some of the technical considerations will be Ethereum compatibility, security, maintaining comparably low gas fees, preserving single block finality, preserving token-based gas currencies, and the opportunity to inherit new features.

Following the announcement, the network’s native token CELO has posted positive results, adding nearly 2 percent in the last 24 hours. At the time of press, the altcoin is trading at $0.535166. This year, the token has added around 41 percent. This and other upcoming upgrades will play a huge role in seeing the token go back to its all-time high of $9.83 reached nearly two years ago.