Coinbase has revealed its backing for Celo’s shift from an independent Layer-1 blockchain to an Ethereum Layer-2 solution.
This transition is scheduled to commence on March 25, during which Coinbase will temporarily halt deposits and withdrawals of Celo’s native token, CGLD, as part of the upgrade.
Celo’s migration to Layer-2 is intended to harness Ethereum’s (ETH) strong security and extensive ecosystem while preserving its key characteristics, including minimal transaction fees and rapid settlement times.
This strategic move is anticipated to boost scalability, lower costs, and enhance interoperability with Ethereum-based applications.
Coinbase has guaranteed users that their CGLD tokens will be automatically transitioned during the migration, requiring no effort on their part. However, users are advised against depositing CGLD during the migration period to prevent any delays in processing.
Email updates will be sent out to notify users when services are temporarily halted and when they resume.
Migration process
The migration involves significant technical upgrades, including quicker block confirmations and the establishment of native bridging between Celo and Ethereum, which will enhance the security and efficiency of asset transfers.
Notably, despite these changes, the ticker symbol for Celo’s Layer-2 network on Coinbase will continue to be CGLD.