Celo is abandoning standalone blockchain in favor of a new “layer-2” network on top of Ethereum. It had initially signaled that it planned to rely on Optimism’s OP Stack, which uses technology similar to Polygon’s. However, one altcoin project stands out in the competition.
It is possible that Celo’s choice is this altcoin project
Celo Blockchain is preparing to move to a layer-2 network on Ethereum. Therefore, suddenly competition began to provide technology to the altcoin project. Polygon Labs co-founder Sandeep Nailwal presented a proposal to the Celo community on Wednesday. In this vein, he suggested that Blockchain use Polygon’s Chain Development Kit. This kit is a code base that developers use to build their own layer-2 blockchains powered by zero-knowledge technology.
Announcing its migration plan in July, Celo signaled that it initially planned to rely on Optimism’s OP Stack, a similar customizable kit that leverages Optimism’s “optimistic” technology. Coinbase’s new Base Blockchain is built on OP Stack, a successful launch so far that has helped position Optimism technology as a top contender in the arena.
A person close to the Celo ecosystem said, “Celo may be inclined to consider Polygon’s offer and other project teams that could potentially submit their own competing offers. Frankly, it wouldn’t be surprising to see others join in.” said. In response to Nailwal’s suggestion, Celo co-founder Rene Reinsberg said, “We look forward to discussing this in more detail with the team here at cLabs and the broader community!” said.
Blockchains compete to attract altcoin projects
Leading altcoin project Ethereum has a rapidly growing world of interconnected layer-2 networks. For this, teams emerge that compete to provide the dominant technology. What is at stake is a race between them to be the first mover or to gain the leading position. It was introduced by none other than Ethereum co-founder Vitalik Buterin as a primary strategy for making transactions cheaper and faster across the overall ecosystem.
Celo currently operates its own independent blockchain. However, it plans to move to an Ethereum layer-2 network. Celo’s transition is significant not only in terms of revenue potential but also in terms of bragging rights. Layer-2 Blockchains have been struggling for the last few months to get altcoin projects to use their Blockchain kits. They also release free tools for developers to clone code bases to create their own Blockchains.
Competition is heating up in the second-tier world!
As you follow from Kriptokoin.com, cryptocurrency exchange Coinbase launched the Base layer-2 network last month. For this, he used Optimism’s OP Stack. This made the competition between Blockchains visible. Other layer 2s like Polygon, Starkware, zkSync, and Arbitrum have all come out with their own Blockchain kits.
Blockchain experts have long been signaling that zero-knowledge (ZK) technology is superior to optimistic technology. But the folks at Optimism’s OP Labs say they don’t see any threat of ZK rollups passing through their product.
Follow us on Twitter, Facebook and Instagram and join our Telegram and YouTube channels to be instantly informed about the latest developments!
58881
