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# 4.3 Blockchain infrastructure: Celo and Ethereum Layer 2 (L2)

The FoR protocol is designed to be built on the Celo blockchain, an Ethereum Layer 2 (L2). Ethereum is the world’s most widely used programmable blockchain platform. It is more than a system for transferring money; it functions like a “global computer” capable of executing contracts, such as “automatically sending funds to a designated fund under specific conditions” (smart contracts), while maintaining a high level of security that makes tampering impossible.

However, while Ethereum (the main network, or Layer 1) is highly secure and popular, concentrated usage creates challenges such as “slow processing” and “rising transaction fees (gas fees).” This is where Layer 2 (L2) technology becomes essential.

L2 can be understood as a “high-speed, low-cost dedicated bypass built to avoid congestion on a major road.” Routine, smaller transactions—such as daily payments and transfers to funds—are processed inexpensively on this L2 bypass, while only the final “bundle of results” is recorded on secure Ethereum (the major road). In this way, it is possible to preserve Ethereum’s extremely high security while also achieving the low-cost, fast convenience that can be used in everyday life without burden.

FoR chose the Celo blockchain, which is especially strong among L2 networks in the ecosystem of environmental regeneration, for the following technical reasons.

#### ReFi Native Ecosystem: 

As the “home of ReFi (Regenerative Finance),” Celo has abundant liquidity and a strong developer community around natural capital-backed assets (Natural Capital Assets) and the on-chain representation of carbon credits. For FoR’s future composability with other projects (such as Toucan and KlimaDAO), the Celo ecosystem provides an optimal environment.

#### L2 Scalability & EVM Equivalence: 

Celo adopts the OP Stack (Optimism’s technology stack). By leveraging technology long proven on Optimism, FoR inherits Ethereum’s security while achieving the fast transactions and extremely low gas fees characteristic of L2s. This makes it possible to build an economy that is not undermined by transaction costs, even for microtransactions such as “buying a 100-yen coffee” or “recording daily activities.” In addition, with full EVM equivalence, the rich development tools, libraries (OpenZeppelin, EAS), and third-party protocols available on Ethereum can be applied as-is.


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