The blockchain industry is becoming increasingly competitive, as a number of different blockchains are vying for a larger share of the market. However, Ethereum has continued to be the leader of the pack due to its robust security, decentralization, and proof-of-stake upgrade. With the recent revelation of their plans to shift from an independent EVM-compatible layer-1 blockchain to an Ethereum layer-2 solution, the Celo platform’s entrepreneurial brains are aiming to capitalize on this trend.
Leveraging the Trend: Celo Aims for Increased Interoperability
The entrepreneurial minds behind the Celo platform are looking to leverage this trend with a recent announcement of their plans to transition from an independent EVM-compatible layer-1 blockchain to an Ethereum layer-2 solution. The transition will use OP Stack architecture, enabling developers to utilize Ethereum’s full range of tools and libraries.
Celo’s proposed transition to Ethereum will offer benefits, including increased security and lower gas fees. With Celo tokens being used to pay for gas, it becomes quite economical for developers and users alike. The transition may increase liquidity flow between Celo and other chains but could incur additional costs in fees.
Future Mainnet Launch: Drastically Lowering Transaction Fees
Celo is using zkEVM rollups to enhance the mobile experience and expand into developing economies as an Ethereum scaling solution. The zkEVMs (also called ‘zkSync Era’) allow the network to have a nearly infinite throughput while retaining full Ethereum compatibility and preserving security and privacy by relying on zero-knowledge proofs.
Linea, a pioneer in zkEVM, had 5.5 million unique wallets during testing and will onboard launch partners soon. After achieving a full mainnet launch, Celo will drastically lower transaction fees to just one-fifteenth of Ethereum’s layer-1 costs.
Celo’s transition could impact the ecosystem, possibly highlighting blockchain scalability as a crucial factor moving forward. Celo’s entry into the zkEVM space opens up exciting possibilities for developers. They can now explore and create decentralized applications (dApps) and platforms for faster payments while maintaining decentralization and security. This advancement could lead to innovative solutions that leverage the benefits of zero-knowledge proofs for enhanced blockchain experiences.
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