Celo Unveils Dango L2 Testnet to Scale Ethereum

Celo's Dango L2 Testnet: Innovating for a Faster Network

On July 7, Celo Foundation, a blockchain-based ecosystem specializing in mobile-first decentralized applications and smart contracts announced the launch of the Dango Layer 2 testnet. This marks a significant advancement in the efforts of the main contributors at cLabs to integrate the standalone blockchain, which is compatible with Ethereum's EVM, into the Ethereum (ETH) ecosystem.

Source: X

At press time, ETH was trading at $2,929.98, after a drop of 3.40% in a day with $352,201,973,653 in market cap and $14,292,030,348 in 24-hour volume.

Ahead of EthCC 2024, scheduled for July 8-11, 2024, Celo Foundation successfully launched the fork of Alfajores testnet. Furthermore, the platform is also inviting developers to test the updated code. According to Celo’s announcement, the update will enhance transaction speed by 50% and mitigate the block time from 5 seconds to 2 seconds. 

About Celo's Dango Layer 2 Testnet Project

cLabs and Celo Community as a team, proposed the idea for Dango Layer 2 testnet project at EthCC 2023. After investing over 1 year in key L2 infrastructure, Celo successfully launched the project.

Diving into the details, the Dango Layer 2 testnet project will operate with Alfajores and all data including smart contracts, accounts, & balances will be shifted to the Dango. Apart from scaling ETH with real-world solutions, the foundation also works to make the transition effortless.

The recent update enhances Celo's integration with ETH by reducing block times to 2 seconds, increasing throughput by 50%, and maintaining 1-block finality. It preserves CELO's dual functionality and introduces Fee Abstraction with multiple ERC-20 tokens as gas currencies. 

Additionally, SocialConnect allows transactions via social identifiers, ensuring low gas fees and higher security for asset transfers, all while committing to sustainable financial practices.

After completing the milestone, the foundation aims to culminate its efforts with the launch of the Celo Layer-2 mainnet by the end of 2024. Last week, Eigen Foundation joined hands with Celo Foundation to incorporate the off-chain data availability layer, EigenDA, into Celo's future ETH Layer-2. 

CELO's Price Performance 

Despite Celo news, the CELO token hasn't shown any positive move. The token was hovering in the red zone, after an intraday drop of 3.04% and a seven-day decline of 19.67%.

At the time of writing, the token was trading at $0.4862, with a market cap of $263,730,433 and $16,133,483 in 24-hour volume. 

Conclusion

The Celo Foundation has made a notable stride in blockchain technology with the launch of the Dango Layer 2 testnet, aimed at enhancing the ETH ecosystem. This update promises to double transaction speed and halve block time while maintaining the unique features of the CELO token. Despite these advancements, the market response has been tepid, with the token’s price experiencing a decline. The foundation is now gearing up for the Layer-2 mainnet launch in early winter 2024, with support from the Eigen Foundation to integrate the EigenDA layer.

Also Read: Vitalik Buterin Highlights Ethereum’s Layer 2 Progress