Celo launches Dango Layer 2 testnet in first step towards joining Ethereum ecosystem

The Block2024/07/07 21:04

By:The Block

Quick Take Celo has successfully launched its Dango Layer 2 testnet, built on Optimism’s OP Stack. Following a vote last summer, Celo plans to transform its Layer 1 blockchain into an Ethereum Layer 2 network, and the successful testnet launch marks the first major step.

Celo CELO -4.37% , the mobile-first Layer 1 blockchain, has launched its Dango Layer 2 testnet in a first major step towards its plan to join the Ethereum ETH -2.55% ecosystem.

Celo, which is EVM-compatible, voted last July to convert its Layer 1 network into an Ethereum Layer 2 chain. Following eight months of evaluation, the Celo community decided to build the Layer 2 network using Optimism's OP -4.0053% Stack, joining Optimism's so-called "Superchain" ecosystem alongside Base, Zora, Mode, and other Ethereum Layer 2 networks.

While Celo users can continue to use native USDT and USDC stablecoins for gas costs on the new network, bridging tokens between Ethereum and Celo will soon be easier. Transactions will also be faster, with a 50% increase in throughput and a decrease in block time from 5 seconds to 2 seconds, according to Celo's announcement .

“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,” Celo core developer cLabs CTO Marek Olszewski told The Block last year.

The Celo team anticipates a mainnet launch in "early winter 2024," according to the announcement.

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