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Arbitrum: The Gateway To Celo’s Layer-2 Success!

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The competition to be the layer-2 for Celo is becoming even more heated with the arrival of Arbitrum.

Arbitrum extends an offer to be the infrastructure for Celo’s layer-2.

Nina Rong, Head of Ecosystem Development at Arbitrum Foundation, submitted a proposal to the Celo community on December 14. She proposed that Celo integrate with Arbitrum’s Orbit Stack for its upcoming layer-2 solution, instead of using Optimism’s OP Stack as previously announced.

The proposal posted by Arbitrum on Celo’s governance forum

The team at Arbitrum Foundation has been following the development of cLabs Proposal for Celo to transition to an Ethereum L2 closely and would like to welcome Celo back to the Ethereum community by proposing the Arbitrum Orbit tech stack as the path forward.

 Arbitrum propose

Initially, Celo planned to build its layer-2 based on Optimism’s OP Stack solution, similar to approaches taken by Base and Zora Network. However, later on, Polygon, Matter Labs (the team behind zSync), and most recently, Arbitrum, extended invitations for the project to use their toolsets. These solutions help projects construct their own networks (layer-2, layer-3) based on each blockchain’s technological foundation.

Overall, transitioning to Ethereum’s layer-2 direction will bring numerous benefits to Celo, such as:

  • Strengthening Ethereum’s development direction and EVM compatibility.
  • Inheriting Ethereum network security.
  • Simplifying liquidity transfer between two chains.

Celo will officially announce the name of the solution it will use as layer-2 in January next year, based on the results of the community vote.

Celo Labs shared in this week’s update that they are exploring and familiarizing themselves with each of the best stack solutions available today. The article also attached a preliminary assessment of the pros and cons of each toolset.

As of today, Arbitrum is the layer-2 that is attracting the most capital, with a TVL of up to 8.4 billion USD, nearly double the figure of 4.6 billion USD for OP Mainnet. Celo Labs also acknowledged that Arbitrum has a TVL larger than any other L2, which partly speaks to the credibility of this blockchain in the market.

Total value locked (TVL) on some top-tier layer-2s. Source: L2Beat

We hope this information will help you in your investment process, but this is not investment advice. Every investment carries risk, especially in this industry, so DYOR before making a decision.

ABOUT THE AUTHOR

Alex Rousseau is a French journalist and analyst with a deep understanding of the intersection between finance, technology, and security. His expertise spans across cryptocurrency, trading strategies, tech protocols, cybersecurity threats, artificial intelligence applications, and cloud computing solutions. He is passionate about demystifying complex technological concepts and their impact on the future of finance.

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