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Introduction to Celo Layer 2

Celo is transitioning from a standalone EVM-compatible Layer 1 blockchain to an Ethereum Layer 2. This shift, proposed by cLabs in July 2023, aims to maintain the seamless user experience that Celo is known for—characterized by speed, low costs, and ease of use—while leveraging Ethereum’s security and ecosystem. As part of this transition, Celo is currently operating two Layer 2 testnets: Dango, which is live, and Alfajores, which will be upgraded to Layer 2 in late September 2024.

What does this mean for our ecosystem?​

Celo's evolution from an L1 EVM-compatible chain to an L2 solution marks a significant milestone in our ongoing relationship with the Ethereum ecosystem. As an L1 chain, Celo has always maintained close ties with Ethereum, sharing its commitment to decentralization, security, and innovation. By transitioning to an L2, Celo strengthens this bond, allowing our developers and protocols to immerse themselves even deeper into the vibrant, collaborative Ethereum community. This integration enhances opportunities for open-source contributions, joint initiatives, and the development of public goods, ensuring that Celo's impact resonates widely across the blockchain space.

From a technical standpoint, this shift brings substantial benefits. Native bridging between Celo and Ethereum, which was previously not possible, will now be a reality. This advancement significantly enhances the security of token transfers by reducing reliance on external bridges, which have often been a point of vulnerability. With native bridging, Celo can offer a more secure and streamlined experience for users, ensuring that transactions within our ecosystem are both safe and reliable. In essence, becoming an L2 not only aligns Celo more closely with Ethereum's expansive network but also empowers our community to innovate with greater confidence and reach.

Alfajores L2 Upgrade​

The Alfajores testnet is set to upgrade to Layer 2 in late September 2024. This upgrade will transition Alfajores into the Celo Layer 2 environment, allowing developers and integrators to start building and testing with the new infrastructure. This is a key step in Celo’s broader evolution, paving the way for future upgrades to the Baklava testnet and the mainnet.

Dango Testnet​

The Dango Testnet announced on the 7th of July 2024, Celo’s first Layer 2 public test network, is currently live. Dango allows developers and infrastructure providers to familiarize themselves with the Layer 2 environment. When Alfajores L2 goes live in the next months, the transactions from Dango won't be synced to Alfajores L2.

Key features of Dango include:

  • Full Alfajores history and state
  • CELO token duality (ability to use CELO natively and as an ERC20 token)
  • Fee abstraction (ability to pay for gas with tokens)
  • Native Bridging to and from the L1
  • Data Availability via EigenDA
  • Staking
  • Ultragreen Money
warning

The Dango Testnet is designed preliminary for testing and experimentation by developers. Its tokens hold no real-world economic value. You may encounter bugs and limitations with the software and documentation.

Getting Started with Dango​

We want you to play around with Dango. With the following information and resources, you can get started adding Dango to your MetaMask or deploying a smart contract.

warning

Please note that the Dango chain ID remains the same as Alfajores, ensuring seamless functionality but introducing the possibility of replay attacks where transactions could be replayed between Dango and Alfajores.

CeloCLI​

  1. Setup celo-cli
celocli config:set --node https://forno.dango.celo-testnet.org/
  1. Check balance of a Cel2 account
celocli account:balance $ACCOUNT_ADDRESS --node https://forno.dango.celo-testnet.org/