Will Celo’s latest move help the company dominate the Tier 2 sector?

• Celo unveils Dango, its Layer 2 testnet, marking the initial phase of integration with the Ethereum ecosystem.
• Celo used Optimism’s OP suite to execute this plan.

In a significant move towards becoming part of the Ethereum (ETH) ecosystem, Celo, a blockchain platform designed specifically for mobile users, has launched its Dango Layer 2 testnet. This marks a major step forward in Celo’s plan to integrate with Ethereum.

It takes two to make Dango

The Dango testnet, proposed at EthCC 2023, facilitates the migration of developers to a new iteration of the Celo blockchain focused on fast, global transactions. This testnet preserves historical data from Alfajores, including smart contracts, accounts, and balances, ensuring a smooth transition.

Built on Optimism’s OP Stack, Dango combines Celo’s Layer 1 security with the scalability and interoperability of OP Stack’s infrastructure.

EigenDA, implemented with support from the Eigen Foundation and the community, lowers transaction fees across Dango’s Layer 2 architecture.

This architecture prioritizes affordability and performance, achieving a 50 percent increase in transaction speed (block processing time reduced from 5 seconds to 2 seconds).

Dango Layer-2 offers features such as seamless linking of WETH and ERC-20 tokens for transfers between Ethereum and Celo, and single block finality for fast and secure transactions.

It supports CELO token interaction on both the native platform and the ERC-20 standard, providing flexibility for developers. Additionally, Dango allows payments using various ERC-20 tokens, including $USDT and $USDC, expanding payment options.

Dango’s SocialConnect feature allows you to send and receive funds using phone numbers or email addresses, simplifying transactions for users who are new to cryptocurrencies.

Low gas fees make Dango affordable, which could potentially help drive global cryptocurrency adoption.

What’s next for Dango?

The launch of the Dango testnet prompted infrastructure providers to initiate a code update for Layer 2 nodes.

Once all major providers have implemented these updates and are compliant with the new design, the Alfajores testnet will undergo the update without the need for a separate blockchain fork.

This streamlined process allows developers to test user-facing apps on the modernized network without impacting the functionality of live, user-facing apps.

Successful completion of this key milestone ahead of the summer 2024 target to launch the Celo Layer 2 mainnet is planned for early winter 2024.

The Celo Foundation and cLabs will remain committed to driving innovation and strengthening the blockchain community, ensuring a smooth transition and dynamic growth for both developers and users.