Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
Celestia is a modular blockchain network that enables the developers with infrastructure to maintain and build the blockchains. The network shares its data availability and consensus layer with other blockchains.
Blockchains can securely publish their transactions on Celestia. It allows their nodes to verify transactions. Celestia works on consensus layers and it constantly checks and validates the stored data and produces proofs of data inclusion and availability.
Celestia is a Modular Blockchain Network
Blockchains like Bitcoin and Ethereum perform all tasks needed through blockchain data availability, consensus, settlement, and execution. These are called monolithic blockchains. However, Celestia shows blockchain modularity which is a design concept that separates the important functions performed by a blockchain.
The base of modular and monolithic blockchains is to perform the transactions and confirm the availability of the transactional data. Data availability refers to the idea that all transaction data is available to nodes on the network. Data availability is important because it allows nodes to independently verify transactions and evaluate the blockchain state without the need to trust one another.
Modular blockchains, like Celestia, are developed to perform a particular function. It aims to provide infrastructure that is developed to help blockchains reach the mass scale. It is easy for developers to place new blockchains and decentralized applications.
The modular blockchain network has many advantages for the crypto world. This blockchain network separates the tasks into specific layers. It is different from the monolithic blockchain which runs everything on a single layer. It offers better scalability, flexibility for developers, and efficiency in the transaction process.
Data Availability Network
Celestia is the world’s first data availability network. Data availability means that any network participant can download transaction data at any time to verify a block. It is a security measure that permits anyone to inspect the blockchain ledger and verify the transactions on it.
The data availability of technology transforms the way blockchain networks operate. It permits the nodes to confirm data availability without downloading the whole dataset for a given block.
The Celestia modular network successfully deployed its mainnet beta, called Lemon Mint. This brings the data availability sampling (DAS) technology into action. It offers an innovative scaling approach that permits the data availability for a particular block without the need to download the whole dataset. LazyLedger had already introduced this idea in a whitepaper four years ago.
The mainnet beta launch has created a buzz in the crypto community. TIA is available for trading on major centralized exchanges. Thus, Celestia’s position in the decentralized finance ecosystem has strengthened as it shows greater accessibility and liquidity for its native token.
Understanding the Celestia Ecosystem
The design of Celestia enables its node to reach consensus on transactions across different chains while performing transactions off-chain. This separation is made possible by isolating the consensus and data availability layers from the execution layer. This arrangement permits Celestia to have a systematic approach to data storage while delegating transaction execution to individual chains.
In the experimental phase, Celestia’s mainnet beta opens the doors for modular chains and rollups to use the platform for consensus and data availability. The platform is getting support and integration from different projects showing its important role in the blockchain landscape.
Arbitrum included Celestia in its Orbit and Nitro tech stacks. Neutron, the Cosmos-based smart contract platform has also introduced Nexus to enable developers to deploy rollups on the Celestia network.
Celestia Debuts TIA Token
TIA is the native currency of this network. It was released with the main net launch on October 31st, 2023. TIA is used to pay fees for Celestia’s data availability solutions. It is used as a gas token and currency by network-based rollups. TIA is also used as staking.
Coinmarketcap data shows that it has a market cap of $392,373,732 and a circulating supply of 141,043,528 TIA. It has a total supply of 1,000,000,000 TIA.
It is the utility token that is not only used for transactions but also for participation in governance. The holders of the token have the right to participate in managing the community pool, which receives a portion of block rewards. This shows that it helps in shaping the network’s future.
Celestia employs a proof-of-state consensus mechanism to secure its network. TIA holders can participate in network security by assigning their tokens to Celestia validators. It acts as a potential source of income as the owners of the token receive a share of the validators’ staking rewards.
What’s Next for Celestia?
Celestia’s future upgrades will be community driven. Some important potential improvements include
- Support for top historical blob data to notably reduce node storage requirements.
- Placing Blobstream to Ethereum Mainnet so L2s can use Celestia for modular data availability.
- Monitoring of Light node network to decide the maximum block size suitable while achieving level 4 light node security.
- More efficient block and meme pool network generation for huge block sizes.
Summary
Celestia is a modular and scalable network that can adapt to the growing number of
users. It has been designed to make the process of creating individual blockchains easy and accessible to a wide section of the audience.
The blockchain network simplifies the process of downloading the completed dataset. It is streamlined by enabling the nodes to confirm the data availability more perfectly which results in quick and more active blockchain operations.
Data availability is the achievement of the network in the crypto world. It has shown the potential to change the blockchain industry.
Source: https://www.thecoinrepublic.com/2023/11/12/celestia-growing-data-availability-network-attracting-users/