Towards Celo 2.0 | Celo Connect 2022


In this presentation, we will explore the key points discussed in the “Towards Celo 2.0 | Celo Connect 2022” presentation. The presentation focuses on the blockchain scalability strategy and introduces the concept of Celo 2.0. We will cover the following topics:

  1. Scalability Strategy
  2. Increasing Block Size
  3. Celo 2.0 Overview
  4. Narwhal: Transaction Sequencing
  5. Parallel Transaction Execution
  6. Multiple Execution Environments
  7. Verifier Dilemma

Scalability Strategy

Don’t Over Engineer

The presentation emphasizes the importance of not over-engineering blockchain solutions. Rather than striving for a perfect solution, it is recommended to focus on improving the product incrementally and staying ahead of demand.

Increasing Block Size

To address scalability, one approach is to increase the block size. However, this comes with challenges as larger blocks may not be processable by all nodes, potentially leading to centralization. The presentation suggests exploring alternative means of achieving decentralization without requiring every user to run a full node.

Different Levels of Nodes

The blockchain ecosystem consists of various types of nodes with different requirements. These include validators, full nodes, and light nodes. Understanding these different levels allows for a more nuanced approach to block size increases.

Incentivizing Full Nodes

Celo introduces the concept of incentivizing full nodes to encourage running on better hardware. By providing incentives, the network can ensure a higher level of performance and reliability from full nodes.

Increasing Block Size

The presentation outlines the evolution of Celo’s block sizes. Starting with a 10 million gas block, Celo has doubled its block size to 20 million gas. Currently, there is a governance proposal to increase the block size to 35 million gas, with the possibility of further expansion. Improvements in block context play a crucial role in enabling these increases.

Celo 2.0 Overview

Celo 2.0 represents a new direction for the blockchain. The presentation highlights that blockchains are essentially databases with primary nodes for writing and replica nodes for reading. Celo 2.0 aims to split responsibilities by introducing specialized subsystems for sequencing and executing transactions, allowing for faster processing.

Narwhal: Transaction Sequencing

Narwhal is introduced as a distributed system that provides a high-speed mempool for Celo. It excels at sequencing transactions, processing over 100,000 transactions per second. Narwhal’s scalability allows for horizontal increases and facilitates the agreement on the order of transactions to be executed.

Parallel Transaction Execution

To further enhance scalability, the presentation suggests parallelizing transaction execution. Processing transactions in parallel reduces the need for large machines and enables faster throughput. Additionally, the presentation emphasizes the importance of building specialized solutions for specific use cases, such as payments.

Multiple Execution Environments

Celo aims to support multiple execution environments within its ecosystem. Alongside the existing EVM (Ethereum Virtual Machine), Celo 2.0 introduces additional environments tailored to specific applications. This approach enables developers to focus on optimizing execution for different use cases, improving overall efficiency.

Verifier Dilemma

The presentation discusses the verifier dilemma and the challenge of achieving decentralization while keeping verification affordable. By leveraging techniques such as proof shards and crowd-sourcing verification, Celo aims to strike a balance between privacy, security, and decentralization.


In the “Towards Celo 2.0 | Celo Connect 2022” presentation, Celo introduced its scalability strategy and the concept of Celo 2.0. The focus is on incremental improvements, block size increases, and the introduction of specialized subsystems for transaction sequencing and execution. Narwhal, the high-speed mempool, and the idea of parallel transaction execution contribute to achieving higher scalability and faster throughput. Multiple execution environments cater to specific use cases, allowing for optimized execution. Lastly, Celo aims to address the verifier dilemma by using techniques like proof shards and crowd-sourcing verification. These advancements lay the foundation for Celo’s evolution and its goal of building a scalable and decentralized blockchain ecosystem.

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