Celestia Modular Blockchain Goes Live

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By A D

After four years of development, Celestia has finally launched its innovative blockchain network. But is it all hype, or does it have the potential to revolutionize the blockchain industry?

What is Celestia?

Celestia aims to address the blockchain trilemma, which encompasses the challenges of speed, security, and decentralization. It proposes to do this through data availability and a fully modular approach. By allowing developers to customize their stack and separating execution from settlement, Celestia promises to offer speed, security, and decentralization while retaining sovereignty.

The Celestia journey began as Lazy Ledger in 2019, aiming to create a modular blockchain ecosystem. Over the years, the project evolved into Celestia, which launched in December 2021. The team includes Mustafa Al-Bassam, who was a well-known hacker at the age of 16 and has a background in blockchain scalability research. Ismael Coffey serves as the CTO, with previous experience at Tenement and the ICF, while John Adler, founder of Fuel, contributes his expertise in scalability research from ConsenSys.

lazyledger changing to celestia
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Celestia Solves Monolithic Blockchain Challenges

Celestia addresses the challenges of monolithic blockchains, where scalability is hindered as block sizes increase. These blockchains require execution by full nodes, causing congestion. App chains offer more flexibility but require a dedicated validator set. Celestia’s solution is to provide the consensus and data availability layers while allowing developers to define their execution environment, offering the ideal balance of customization and scalability.

Celestia’s modular approach separates the blockchain into various layers, including execution, settlement, consensus, and data availability. Users can choose their preferred execution environment, settlement layer, and rely on Celestia for consensus and data availability. This approach enhances flexibility and customization.

Celestia collaborates with various teams and developers to offer a range of options. These collaborations include rollup frameworks, blockchain infrastructure teams, and DeFi projects. Rollkit, Blobstream, and Sovereign SDK are examples of the infrastructure pieces that make deploying and securing chains on Celestia more accessible.

The Tia Token

tia(celestial) price chart
Image Source: CMC

Celestia’s token, Tia, serves as gas and governance for the network. Inflation is set at 8% for the first year, decreasing to 1.5% over time. The token allocation includes reserves for core contributors, early investors, public distribution, and ecosystem development. There was also a Genesis airdrop for eligible participants.

Following the Airdrop, to a 5.5% increase in the token’s value. TIA is currently valued at $2.23 per coin, with a market cap of $163 million. It has a total supply of 1 billion tokens, of which 74 million are currently in circulation.

Data Availability Sampling (DAS)

Strip away the complexities, and every blockchain revolves around two core functions: consensus and data availability. Consensus ensures the agreement on transaction order, while data availability ensures that transaction data is accessible and verifiable by anyone.

Data availability is paramount in blockchain. It guarantees the integrity of data, which is essential for trustless transactions and validation. Celestia separates its focus from execution and settlement layers, allowing users to determine their data availability approach.

Celestia introduces Data Availability Sampling (DAS) to address data availability challenges. DAS involves light nodes randomly sampling transactions in a block to ensure the complete data is available. It safeguards against data withholding attacks.

Scaling blockchain networks while preserving decentralization is a challenge. Increasing the requirements for validators might lead to centralization. DAS offers a solution that scales without sacrificing decentralization.

Erasure Encoding for Data Availability Sampling

Erasure encoding, the technology used to protect information during transmission or storage, plays a crucial role in DAS. This encoding adds redundancy and recovery information to ensure data availability.

Erasure encoding is used in DAS to ensure that block data is fully available. By creating a two-dimensional grid of data, Celestia ensures that an attacker must hide a significant portion of the data to make it unrecoverable.

celestia blockchain model
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The Future of Celestia: Scalability and Speed

Celestia’s vision extends beyond its current offerings. The network plans to increase block sizes to approximately 1GB, ensuring abundant data availability for the modular ecosystem. This scalability is a testament to Celestia’s commitment to providing a robust and efficient blockchain platform.

Pros:

  • Scalability: Celestia’s plan to support 1GB block sizes is a major step forward in addressing blockchain scalability concerns. It opens the door to handling a significant volume of transactions, potentially competing with traditional financial systems.
  • Efficiency: Larger block sizes contribute to faster transaction speeds and lower costs, aligning with the ongoing quest for blockchain efficiency.

Cons:

  • Network Evolution: The transition to 1GB block sizes will require ongoing development, testing, and community support. It’s essential for Celestia to navigate this journey successfully to realize its full potential.

Read: How Blockchain is Revolutionizing The Financial Industry

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