Celo, initially planning to construct its Ethereum layer-2 network with Optimism’s OP Stack, now faces a burgeoning competition as Polygon, Matter Labs, and now Arbitrum vie for the opportunity.
Arbitrum, a prominent layer-2 solution, has joined the fray, intensifying the race to secure the contract for developing a new layer-2 blockchain for the Celo network.
Competition Among Layer-2 Solutions
Initially considering Optimism’s OP Stack, Celo has witnessed the entry of alternative proposals from Polygon and Matter Labs, featuring stacks based on zero-knowledge technology. Now, the Arbitrum Foundation, represented by Nina Rong, the head of ecosystem development, has entered the competition, proposing Arbitrum’s Orbit tech stack for Celo’s consideration.
Arbitrum’s Proposal and Alignment with Celo’s Vision
Furthermore, Nina Rong’s proposal to the Celo community advocates for Arbitrum’s Orbit tech stack, highlighting its adaptability in building customizable layer 2 and layer 3 chains based on optimistic technology.
Moreover, expressing alignment with Celo’s mission of fostering a financial ecosystem for universal prosperity, Rong emphasizes Arbitrum’s potential to re-engage Celo with the Ethereum community.
Celo has set a target in mid-January to select a stack for its new chain, allowing community members ample time to assess the competing solutions. Further, Celo Labs, the primary developer behind the network, has initiated technical evaluations and discussions, focusing on understanding each stack’s functionalities, technology readiness, and integration possibilities.
Arbitrum’s Strength in TVL and Market Trust
An essential aspect of Arbitrum’s appeal is its status as the largest layer-2 network concerning Total Value Locked (TVL). In addition, the Arbitrum One network boasts a TVL of $8.4 billion, significantly surpassing OP Mainnet’s $4.6 billion. This indicates a substantial market trust in Arbitrum’s technology and reliability.
Furthermore, the evolving landscape of layer-2 solutions for Celo’s network development now includes Arbitrum, intensifying the competition among established players. With significant TVL and a compelling proposal, Arbitrum brings substantial credibility to the table, creating a compelling choice for Celo.