Celo's Move to Ethereum Layer-2 Backed by Coinbase

Coinbase has declared its backing for Celo's transition from an independent Layer-1 blockchain to a network operating on Layer-2 of Ethereum.

The switch is scheduled to initiate on March 25, with Coinbase temporarily halting deposits and withdrawals of Celo's native token, CGLD, throughout the upgrade process.

Celo's objective in moving to Layer-2 is to take advantage of Ethereum's (ETH) strong security and extensive ecosystem while preserving its signature features, including minimal transaction fees and rapid settlement times.

This strategic repositioning is anticipated to boost scalability, decrease costs, and improve compatibility with Ethereum-based applications.

Celo is making the transition from a Layer 1 blockchain to a Layer 2 of Ethereum. Coinbase will carry out this upgrade starting today at 8pm PDT. During the upgrade, CGLD transactions will be temporarily disabled.

Here's what to expect 🧵

Coinbase has confirmed that users' CGLD tokens will be automatically updated during the migration, requiring no action from the users. However, the exchange advises against depositing CGLD during the migration window to prevent delays in processing.

Email notifications will be dispatched to inform users when services are discontinued and when they have been resumed.

Process of migration

The migration process encompasses considerable technical alterations, including quicker block confirmations and the establishment of native bridging between Celo and Ethereum, improving the security and efficiency of asset transfers.

Despite these modifications, the token symbol for Celo's Layer-2 network on Coinbase will remain as CGLD.