Standing out from the massive monolithic blockchains, Bitcoin, Ethereum, and Solana is the first-of-its-kind modular blockchain known as Celestia.
The question is, why does Celestia stand out, and does it have a future in the hyper-competitive space of Web3?
Let’s find out!
What is Celestia?
Celestia is the first modular blockchain, founded in 2019, with the primary mission of creating a fully flexible, scalable, and stable network ecosystem that monolithic blockchains generally lack. After raising over $155M from leading VCs such as Bain and Company, Robot Ventures, Polychain and others, Celestia has developed one of the most powerful ecosystems in the entirety of Web3.
What is a modular blockchain, and why do we need it?
What is a Modular blockchain?
Generally, standard monolithic networks are known to suffer from scaling difficulties due to the workload they must process. For example, the monolithic network Ethereum is required to process all core functions of a blockchain, including the processing and authenticity of transactions, management of nodes and the order of transactions.
On the other hand, modular blockchains such as Celestia separate consensus from execution and introduce a new standard where modular networks are made up of interconnected, each responsible and optimized for specific functions. All in all, this allows developers to experience unmatched interoperability and scalability when building apps in the ecosystem.
Well known for its interoperability, the Celestia network is IBC-enabled, making it fully compatible with Cosmos and the entire ecosystem of networks. Nonetheless, Celestia primarily serves as a data availability layer for rollups and layer 2 networks, ensuring that data is always accessible without any execution or settlement limitations.
Due to its modular blockchain stack, anyone can launch their own blockchain without facing scalability issues and without the need for its own validator set, as it automatically inherits the security from the Celstia Validator set. Celestia network opens new possibilities for developers to build without the usual costs and limitations of blockchain development.
Celestia Ecosystem
Evolving exponentially since its inception, Celestia has attracted devs to build and integrate into its ecosystem, boasting an impressive 68 dApps and networks that include Manta Network, Hyperlane, Eclipse, Orca, Caldera and many other leaders in Web3.
Although they don’t have the highest activity out of all the chains, they do have an estimated 94k monthly loyal users on the native network, with over 33M transactions conducted overall. All in all, Celestia has showcased its solution to scalability and the potential of modular blockchain technology!
Celestia Token ($TIA)
It’s time to introduce $TIA, the driving force behind the Celestia network. $TIA is the native token with multiple utilities, which primarily include paying transaction fees, staking to secure the network, data storage and participating in governance proposals. The $TIA token is also used to reward all participants who contribute in any way to the network.
Conclusion
According to CoinMarketCap, at the time of writing, $TIA is priced at $3.66 with a large market cap of $2.11B, ranking it in the top 50 cryptos by market cap. Last year, in February 2024, $TIA achieved an ATH of $20.91 and is now down due to dry and bearish market conditions. With bullish conditions set to arise, it will be exciting to see if $TIA can proclaim its previous ATH of 2024 and beyond.
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Disclaimer
The content provided in this article is purely informational and nothing said is financial advice. Proceed with caution and always invest what you are prepared to lose. Remember that you are entirely responsible for your assets and investments and the author and the publication do not endorse any of the cryptocurrencies, protocols and/or strategies in this article.
