Celo in Search of Blockchain Partner: Navigating the Money Issue

• Celo Blockchain Migration: Technical Evaluations and Proposals
• A Shift from Technical Evaluations
• Key Factors for Layer-2 Networks
• Celo: The Blockchain Industry's Bachelorette
• Finding the Best Stack for Celo

Celo Blockchain Migration: Technical Evaluations and Proposals

The Celo blockchain's transition to a new layer-2 network on top of Ethereum$2,315 -2.42% has been a significant focus in recent months. Developers have been assessing technical proposals from various teams seeking to contribute technology to the project. Among those competing for this mandate are prominent players in the blockchain industry, including Optimism$3.67 -1.41%, Polygon$0.967 -3.65%, zkSync, and Arbitrum. All are eager to provide their technological plans to new chain builders to increase their user base and software offerings, also known as stacks.

A Shift from Technical Evaluations

Tim Moreton, CEO of cLabs, the primary developer behind Celo, expressed in a recent blog post that as the technical evaluations come to an end, focus is shifting towards non-technical dimensions. According to Moreton, this process differs from evaluating published software and is hard to predict in terms of timeline, especially as the candidate stacks are still finalizing their economic terms and incentive programs.

Key Factors for Layer-2 Networks

Specifics of terms like revenue sharing can play a significant role for builders of new layer-2 networks. For example, Arbitrum, currently the largest layer-2 network in terms of Total Value Locked (TVL), announced last week that users of its Expansion Program are obligated to transfer 10% of the protocol's net revenue to the Arbitrum Foundation. Moreton did not provide a specific timeline for finalizing a recommendation but assured efforts are being made towards a comprehensive proposal.

Celo: The Blockchain Industry's Bachelorette

Celo ranks 26th based on the crucial metric of total value locked (TVL) at $116 million, significantly behind Ethereum, the No. 1 ranked blockchain with $30.6 billion. However, this hasn't reduced the interest of Ethereum's layer-2 networks, all jockeying to establish themselves as frontrunners in this rapidly evolving space. Their pursuit of Celo has assumed a higher marketing significance, likened to a beauty pageant or the blockchain industry's Bachelorette.

Finding the Best Stack for Celo

Key players in the race to win Celo's approval have been hard at work, providing test networks, technical assistance, and access to top executives. The cLabs team received an internal OP Stack-based testnet from Optimism developers, while Polygon has provided two testnets and deep technical expertise. Matter Labs' co-founder, Alex Gluchowski, also joined a Celo community call and provided insightful feedback.

Arbitrum, on the other hand, offered ample information from public sources, along with the opportunity to ask questions to their team in shared chats and calls. The overall aim is to find the best stack for Celo's specific needs. As Moreton clarified, the focus is not on identifying the best stack overall, but the most suitable one for Celo.

Edited by Jonathan Stoker