Celo, a platform designed to make the decentralized economy accessible to anyone with a smartphone, is transitioning from a Layer 1 blockchain to an Ethereum Layer 2 network. This move has been praised by Ethereum co-founder Vitalik Buterin sparking enthusiasm and debates within the web3 community.
Vitalik was amazed to see Celo getting traction, especially in its meteoric rise regarding the stablecoin minting. Stablecoin transaction volume in Celo has grown in the past year, and it recently surpassed Tron DAO in the daily active addresses.
At present, Celo L2 is in its testnet phase, and this article will guide you through the recent upgrades regarding the network and its upcoming events. Also, we will look at whether it is a good option to engage and get into the ongoing discussions around Vitalik’s remarks.
Vitalik’s View on the Transition From Layer 1 to Layer 2
Vitalik Buterin aims for a broader transition in the Ethereum network, tackling all the security, gas fees, and scalability issues. He considers L2 networks as cultural extensions that have the potential to influence and change the whole web3 environment into a pluralistic atmosphere.
Celo’s L2 is characterized by high speed and low cost, which attracted Vitalik. In his recent tweet related to the uprise of Celo, he poured high praises on Celo quoting “Improving worldwide access to basic payments/finance has always been a key way that Ethereum can be good for the world, and it’s great to see Celo getting traction.”
Celo’s Timeline: From Wallet Days to Major Ethereum L2 Solution
- 2018: Celo was launched in 2018 with the initial plan for a simple financial app. The plan to build a wallet was later dropped, and the Celo community built a blockchain at the top of Ethereum.
- 2020: Celo network’s mainnet was launched on Earth Day, 2020, and later it activated a proof-of-stake consensus by voting. It was one of the first initiatives to integrate sustainability by decreasing the carbon footprint.
- 2022: Celo started investing in startups with its Celo Camp, and formed partnerships with brands like Opera. With the integration into Opera’s Minipay, Celo decreased the costs of sending money, which attracted millions of users to the network.
- 2024: Celo launched its Layer 2 testnet in two phases. On September 26th, the second Celo L2 testnet went live, and it helped the node operators and the developers to ensure smooth working before the mainnet launch. In November, the mainnet will launch officially.
Debate on Vitalik’s View: The Skepticism Around Celo
Ethereum has evolved into a base for layer-2 solutions, and the developers can build unique sub-ecosystems that help the web3 community delve into high-end technological advancements as well as a sustainable future.
Vitalik’s attraction to Celo has grown from its attention to carbon-neutral infrastructure. However, not all responses to this alignment are positive. Some of the crypto experts see Vitalik’s bias towards Cleo in a skeptic lens.
Is CELO a Good Investment Option?
Celo Network’s native token $CELO went on an uptrend and showed an increase of 25% after the tweet by Vitalik. It is usual for cryptocurrencies to create a short-term wave after tweets from famous personalities. Beyond this, the real question lies in the long-term value of CELO tokens.
If the Celo Network manages to fulfill its roadmap and generate a user base without much competition, we can see a long term upward movement. However, it is important to do your own research if you are planning to invest in any coins. Go through the whitepaper of Celo and engage with its community to get a larger view.
Final Thoughts on Celo
In November, we can see the launch of Celo mainnet, and chart analysts expect another short-term upward movement upon the event. If you are interested in unique networks like Celo, diversify your portfolio and escape the FOMO by purchasing a small portion.
Follow Vitalik’s tweets and blogs to get deep insights into his vision. Finally, although endorsed by famous personalities, always be skeptical about any blockchain assets. The crypto market is volatile and the movement of charts depends on multiple external factors than media exposure. Always DYOR save your assets.
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