The Celo Foundation has recently announced the successful launch of the Dango Layer-2 testnet. Developed by cLabs, a core contributor to Celo, this testnet represents a significant advancement in integrating Celo's blockchain with Ethereum. 

This launch marks an important step for developers, offering them a new platform to test their projects and benefit from the enhancements that Dango brings to the table.

A Major Milestone for Celo

First proposed during EthCC 2023, the Dango testnet aims to facilitate the transition of developer projects to a more efficient blockchain iteration. 

It is built on Optimism’s OP Stack, which reportedly maintains the robustness of Celo’s Layer 1 while offering enhanced scalability and interoperability. By leveraging this advanced framework, Dango promises faster and more cost-effective global payments.

Key Features of Dango

Bridging of WETH and ERC-20 Tokens

One of the standout features of Dango is its ability to bridge WETH and ERC-20 tokens. This capability allows for seamless transfers between Ethereum and Celo, enhancing interoperability and user experience. Developers can now create applications that interact smoothly across both blockchains.

1-Block Finality

Dango ensures swift and secure transactions with its 1-block finality feature. This is particularly beneficial for global payments, where speed and security are paramount. Users can expect transactions to be confirmed quickly, enhancing the overall efficiency of the network.

CELO Token Duality

Another notable feature is the CELO token duality, which allows for interaction with CELO either natively or via the ERC20 interface. This provides flexibility for developers, enabling them to choose the most suitable method for their applications.

Fee Abstraction

Dango also introduces fee abstraction, permitting multiple ERC-20 tokens to be used as gas currencies. This includes Celo-native tokens such as $USDT and $USDC. 

The architecture of Dango, supported by EigenDA as a data availability layer, is designed to keep transaction fees minimal while improving throughput by 50%. By reducing transaction costs, this feature aims to make crypto transactions more accessible to a wider audience.

SocialConnect

To further enhance accessibility, Dango incorporates SocialConnect. This feature allows users to send money to phone numbers, email addresses, or other social identifiers. It simplifies the process of making crypto transactions, making it more user-friendly.

Preparing for the Mainnet Launch

The successful completion of this milestone sets the stage for the anticipated launch of the Celo Layer-2 mainnet in early winter 2024. The Dango testnet allows developers to test their applications without impacting user-facing services. 

Once all key infrastructure providers have updated their node code, the Alfajores testnet will be upgraded without creating a new fork, ensuring a seamless transition.