Coinbase has announced its support for Celo’s migration from a standalone Layer-1 blockchain to an Ethereum Layer-2 network.
The transition is set to begin on March 25 with Coinbase temporarily suspending deposits and withdrawals of Celo’s native token, CGLD, during the upgrade.
Celo’s move to Layer-2 aims to leverage Ethereum’s (ETH) robust security and expansive ecosystem while retaining its hallmark features, such as low transaction fees and fast settlement times.
This strategic shift is expected to enhance scalability, reduce costs, and improve interoperability with Ethereum-based applications.
Coinbase has assured users that their CGLD tokens will be automatically converted during the migration, requiring no action on their part. However, the exchange advises refraining from depositing CGLD during the migration window to avoid processing delays.
Email notifications will be sent to inform users when services are disabled and when they have resumed.
Migration process
The migration process includes significant technical changes, such as faster block confirmations and the introduction of native bridging between Celo and Ethereum, enhancing the security and efficiency of asset transfers.
Despite these changes, the token ticker for Celo’s Layer-2 network on Coinbase will remain as CGLD.
