As the cryptocurrency landscape continues to evolve, Celo, the mobile-first Layer 1 blockchain, has made a significant move by launching its Dango Layer 2 testnet. This milestone marks the first step in Celo’s plan to integrate with the Ethereum ecosystem, a decision that was made through a community vote last summer.
Joining the Ethereum Superchain
After eight months of evaluation, the Celo community has decided to build its Layer 2 network using Optimism’s OP Stack, aligning itself with Optimism’s “Superchain” ecosystem. This ecosystem includes other prominent Ethereum Layer 2 networks such as Base, Zora, and Mode.
“For most EVM-compatible chains, it’s increasingly hard to justify a standalone positioning in a market where the Ethereum scaling roadmap is proving itself,” said Marek Olszewski, the Celo core developer and cLabs CTO, in a statement to The Block last year.
Improved User Experience
The launch of the Dango Layer 2 testnet brings several enhancements for Celo users. While they can continue to use native USDT and USDC stablecoins for gas costs, bridging tokens between Ethereum and Celo will become more straightforward. Additionally, the network will see a 50% increase in throughput and a decrease in block time from 5 seconds to 2 seconds, resulting in faster transactions.
Roadmap and Timeline
According to Celo’s announcement, the team anticipates a mainnet launch of the Dango Layer 2 network in “early winter 2024.” This transition marks a significant milestone for Celo as it aligns its infrastructure with the growing Ethereum ecosystem, aiming to provide its users with enhanced performance and seamless interoperability.
As the cryptocurrency industry continues to evolve, this move by Celo demonstrates the importance of strategic partnerships and the ongoing efforts to improve the user experience within the decentralized finance (DeFi) landscape.