Marek Olszewski, CTO of cLabs, explains Celo's decision to return to Ethereum

Celo’s Integration with Ethereum Scaling Solutions

Marek Olszewski, co-founder of Celo and CTO of cLabs, mentioned that the development of Layer 2 solutions has allowed Celo to integrate back into the Ethereum ecosystem. Initially envisioned as an easy-to-use mobile wallet on Ethereum, Celo transformed into its own EVM-compatible and scalability-focused Layer 1 blockchain in 2020. With Ethereum’s scalability roadmap now in place, Celo is planning to return and be part of a larger Ethereum scaling initiative.

Ethereum Migration Proposals and ‘Celo 2.0’ Plans

cLabs proposed migrating Celo from an independent Layer 1 to a Layer 2 built on Ethereum, leveraging Optimism’s OP Stack. Other proposals include migrating to an Ethereum Layer 2 via the Polygon CDK and using Matter Labs’ ZK Stack. The community is still evaluating these options before making a decision.

Taking the Leap to Become an Ethereum Layer 2

Celo is not the only project considering transitioning to become an Ethereum Layer 2. Several other blockchain projects are collaborating with Polygon Labs for their migration plans. Olszewski believes that it is increasingly challenging for EVM-compatible chains to justify standalone positioning in a market where the Ethereum scaling roadmap is proving itself.

A Mobile-First Approach

Given Celo’s mobile wallet origins, a mobile-first approach is core to the project. Olszewski emphasized that making web3 more universally accessible requires building mobile-first experiences, especially when transitioning to a Layer 2.

The ‘Home of ReFi’

Celo aligns itself with the Regenerative Finance (ReFi) ecosystem, aiming to promote sustainable and inclusive financial practices. The “Ultragreen Money” initiative demonstrates Celo’s commitment to sustainability by making the CELO token deflationary and allocating transaction fees to a Carbon Offset Fund. The ReFi ecosystem supports various projects like Universal Basic Income (UBI) distribution protocols and environmental recovery efforts.

Hot Take: Celo’s Strategic Move Back to Ethereum

Celo’s decision to integrate back into the Ethereum ecosystem through Layer 2 solutions not only aligns with current trends in blockchain technology but also reinforces its commitment to sustainability and inclusive financial practices within the ReFi ecosystem.