- Multiple firms are bidding to provide the technology for Celo’s transition to a Layer 2 chain.
- Developers have proposed a framework to help streamline the decision of which Layer 2 stack to use.
- Developers suggest that they want to carry out the transition as soon as possible.
As the Layer 2 narrative gains traction, several small Layer-1 blockchains are considering transitioning to tap into Ethereum’s deep liquidity. Among these chains is Celo, an Ethereum Virtual Machine (EVM) compatible chain with a focus on mobile solutions.
The Celo community initially decided to transition to a Layer 2 chain using Optimism‘s OP Stack in July 2023. But things have become more complicated as a tech stack race has since emerged within the Ethereum Layer 2 space.
In recent months, different Layer 2 solution providers have submitted competing proposals to court Celo, presenting developers with the daunting task of selecting the right Layer 2 stack from a growing pool of options. Responding to this challenge, developers have developed a guiding framework to streamline the decision-making process.
The Best Fit, Not the Best Stack
While vying bids suggest that Celo is set to serve as a battlefield in the ongoing fight for dominance between L2 stack providers, cLabs, the team behind the project, argues that it is not necessarily seeking to decide the “best L2 stack.” The team expressed this view while introducing what it described as its proposed “Framework for selecting an L2 stack,” published on Wednesday, November 29.
“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,” cLabs wrote.
Technical considerations outlined by cLabs include Ethereum compatibility to ensure developers can easily port their applications to the Layer 2 chain and single block finality to ensure speedy transactions, which benefit Celo-based payment solutions. The development team also stressed the desire to use a solution that allowed Celo’s transition to occur as seamlessly as possible.
“Our objective is to deliver CEL2 as soon as possible, minimizing implementation risk,” they wrote.
On the non-technical side, cLabs seeks to join a platform that allows mutual growth of the blockchains within its ecosystem and is actively involved in the Ethereum community.
The proposed framework would be open to community feedback by mid-December. Based on the reviewed framework, cLabs expects to decide on a tech stack by mid-January.
The Battle for Celo’s L2 Transition
Polygon Labs and Matter Labs, the developers of the zkSync Era chain, have thrown their hat in the ring to provide the technology for Celo’s Layer 2 transition, each touting their solution as the better alternative over Optimism’s OP Stack. The tussle comes as these Layer 2 stack providers push to establish the dominant Layer 2 ecosystem in line with multichain roadmaps established in 2023.
While not the intended outcome, Celo’s decision would likely contribute to the debate over which is better between Optimistic and zero-knowledge (ZK) rollups. The tech stacks from Polygon Labs and Matter Labs fall into the latter.
One of the main arguments for ZK rollups over Optimistic rollups is the faster settlement on the Ethereum chain for an improved user experience. On the other hand, Optimistic rollups are easier to implement, requiring less specialized knowledge.
On the Flipside
- The provided framework may change following community feedback.
- Polygon Labs and Matter Labs were involved in a plagiarism dispute in August 2023. The former accused the latter of copying its code and failing to give proper attribution.
Why This Matters
The competition to provide the technology for Celo’s Layer 2 transition means that many view the blockchain’s choice as a potential litmus test for which solution is more appealing. The recently proposed framework will guide how this decision would be made.
Read this to learn more about the battle for Celo’s Layer 2 transition:
Polygon Bids Against OP for Celo’s Ethereum L2 Transition
Find out why MATIC’s price may be set to explode:
MATIC Whales $90M Spree Hints at Imminent Price Rally