Arbitrum Eyes Celo's Migration to Layer-2 Blockchain

• Intensifying Competition to Construct New Layer-2 Blockchain for Celo Network
• Arbitrum Foundation Proposes Arbitrum Orbit
• Celo's Initial Plans with Optimism's OP Stack
• Celo Labs Begins Technical Evaluations
• Assessing Pros and Cons of Various Proposals

Intensifying Competition to Construct New Layer-2 Blockchain for Celo Network

A new competitor has entered the race to develop a new layer-2 blockchain for the Celo network. Nina Rong, the head of ecosystem development at the Arbitrum Foundation, has proposed that Celo should utilize Arbitrum's Orbit tech stack. This tech stack enables the construction of customizable layer 2 and layer 3 chains using Arbitrum's optimistic technology.

Arbitrum Foundation Proposes Arbitrum Orbit

The Arbitrum Foundation has been keeping a close eye on the development of cLabs Proposal for Celo's transition to an Ethereum$2,315 -2.42% L2 and has suggested the Arbitrum Orbit tech stack as the way forward. The Arbitrum team hopes this will mark Celo's return to the Ethereum community. The Arbitrum Foundation's mission aligns with Celo's, which is to establish a financial system that promotes prosperity for all.

Celo's Initial Plans with Optimism's OP Stack

In July, Celo had planned to construct its layer 2 with Optimism$3.67 -1.41%'s OP Stack, a tech stack also based on optimistic technology. However, since then, Polygon$0.967 -3.65% and Matter Labs have also proposed their tech stacks based on zero-knowledge technology to the Celo community. Celo aims to select a stack for its new chain by mid-January, providing the community ample time to decide on the best stack.

Celo Labs Begins Technical Evaluations

Celo Labs, the main developer behind the network, updated its discussion-forum page earlier this week stating that the team is currently conducting technical evaluations. The update clarified that the team's focus is on learning and understanding each stack, familiarizing themselves with the technology, and assessing its current state of readiness.

Assessing Pros and Cons of Various Proposals

The update from Celo Labs included a preliminary analysis of the advantages and disadvantages of each proposal, with the most recent one being from Arbitrum. Arbitrum stands out as the largest layer-2, based on the key metric of total value locked (TVL) which represents deposits locked into decentralized-finance protocols on any network. The TVL for the Arbitrum One network is currently $8.4 billion, nearly double the $4.6 billion of the second largest, OP Mainnet. This indicates the significant level of trust Arbitrum has earned in the market.

Edited by Jonathan Stoker