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Celo Greenlights Migration to Ethereum Layer 2: A Boost for Liquidity and Security

Celo has approved a transition from layer-1 blockchain to Ethereum layer-2, aiming to enhance security and simplify liquidity sharing.

Celo to Become Ethereum Layer 2, Bolsters Security

Celo's proposal to transition from an independent layer-1 blockchain to Ethereum layer-2 has been passed. The initiative, developed by CLabs, is intended to streamline liquidity sharing between Celo and Ethereum while enhancing security.

The proposal garnered significant support, with 128 out of 131 votes in favor of the transition. The CLabs team initially announced the proposed move on July 16, indicating that it was the result of "months of research and initial discussions with Celo and Ethereum community members."

The migration aims to simplify the developer experience and improve security. Since Celo is already compatible with the Ethereum Virtual Machine (EVM), Ethereum developers can readily port their existing apps or develop new ones using many of the same tools.

Celo pointed out in its proposal that the move will bring several benefits, such as increased Ethereum alignment and EVM compatibility, stronger security assurances than Celo can individually provide, and a trustless bridge to Ethereum that simplifies liquidity sharing.

The approval of the migration has had a positive effect on the market, with CELO, the blockchain's native token, trading 4% higher on Monday and showing a 10% increase over the last seven days.