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1. Recent proposals from Celo Blockchain to return to Ethereum
ecosystem
CLabs, the company in charge of creating the Celo blockchain, looks to rejoin into the Ethereum
community through the migration from an independent layer-1 EVM-compatible blockchain to an
Ethereum layer-2 solution.
Instead of having to keep track of tooling and library composability through upgrades, the move
would use OP Stack as the architecture to become an Ethereum L2 blockchain. It might enable Celo
developers to quickly implement the entire set of Ethereum tooling/libraries, according to a
suggestion being discussed in the Celo governance forum.
Two further key differentiators comprise the changing of current validation servers into decentralised
sequencers for L2 and an off-chain data availability layer controlled by Ethereum node operators and
safeguarded by restaked Ether (ETH).
Layers 1 and 2 blockchains provide multiple functions, but they also have distinct structures and
concepts. L2 solutions focuses on improving the usability of L1 blockchains.
To work independently L1 networks have been created.

2. The switchover was supposed to have advantages including greater security while keeping petrol
prices down. Petrol prices are not anticipated to change significantly. The proposal, which is slated to
be debated on a governance call on 21 July before being released for a "temperature check" the
following day, states that petrol prices can be significantly lower than on previous L2s because it is
for an L2 solution with off-chain data access.
End users would not be harmed by the choices made, and holders of CELO token would still have
some say regarding the way core contracts are managed. Additionally, petrol can be bought with
CELO tokens.
Although the modification seems to be purely technological, the environment of Celo could be
affected in a number of ways by it. According to the forum debate, it would be possible to increase
the amount of liquidity that moves between Celo and other chains, but it would also mean that
sequencers would have to pay more in fees for the data availability layer and gas on Ethereum. It's
also not obvious whether the benefits for sequencers would be the same as those for validators right
now.
Due to the fierce competition between blockchains, Celo is working to enhance its mobile user
experience through the addition of new features and capacities. The Celo ecosystem also has new
markets in mind, where there is a larger preference for technologically advanced means of payment.
Celo's scalability, accessibility and interoperability, may be improved by returning to the Ethereum
ecosystem and implementing Layer 2 solutions, making it a more reliable platform for its intended
user base. This change also demonstrates the industry's collaborative ethos, where projects
recognise the value of cooperating to create a more open and scalable decentralised financial
system.