As the race to develop a new layer-2 blockchain for the Celo network intensifies, the Arbitrum Foundation has thrown its hat into the ring. Nina Rong, the foundation’s head of ecosystem development, recently proposed that Celo adopts Arbitrum’s Orbit Tech Stack. This unique tech stack facilitates the creation of customizable layer 2 and layer 3 chains using Arbitrum’s optimistic technology.
Arbitrum’s Proposal to Celo
Rong’s proposal to the Celo community was a bold move, suggesting a return to the Ethereum community through the adoption of Arbitrum’s Orbit tech stack. The Arbitrum Foundation has been closely monitoring cLabs’ proposal for Celo’s transition to an Ethereum L2, and believes their tech stack offers the most viable pathway forward.
Arbitrum’s proposal is in line with Celo’s mission to create a financial system that fosters prosperity for all, a vision that resonates with the Arbitrum Foundation. The proposal comes as Celo is preparing to choose a tech stack for its new chain by mid-January, allowing ample time for community members to evaluate the best option.
Competition in the Layer-2 Blockchain Space
Previously, Celo had planned to build its layer 2 using Optimism’s OP Stack, another tech stack based on optimistic technology. However, Polygon and Matter Labs have since presented their zero-knowledge technology-based stacks to the Celo community, adding to the competitive landscape.
Celo Labs, the primary developer behind the network, has begun technical evaluations and is committed to understanding each stack’s intricacies. They are also keen on assessing the technology’s current state of production-readiness. This includes a preliminary evaluation of Arbitrum’s proposal, which has recently entered the fray.
Arbitrum’s Market Standing
Arbitrum stands out in the layer-2 blockchain market due to its high “total value locked” (TVL), a key metric representing deposits locked into decentralized-finance protocols on a given network. Currently, the Arbitrum One network boasts a TVL of $8.4 billion, nearly double that of the second-largest, OP Mainnet, with a TVL of $4.6 billion.
This impressive TVL speaks volumes about the trust Arbitrum has garnered in the market, making it a strong contender in the race to develop Celo’s layer-2 blockchain.
For those interested in tracking the progress of this exciting development, the cryptoview.io application offers real-time updates on the latest happenings in the crypto space. It’s a handy tool for keeping an eye on the evolving landscape of layer-2 blockchain technology.
