What is Celestia
The Celestia Network has emerged as a revolutionary platform, offering a cost-effective solution for creating and deploying tailored blockchains. Its architecture boasts unique features that create an environment conducive to both developers and users. To comprehend its intricacies, let’s delve into the architecture of Celestia.
Celestia adopts a modular approach, distinguishing itself from traditional monolithic blockchains. Unlike monolithic structures, where execution, settlement, and data availability layers are integrated, Celestia separates these functions. This modularity enhances flexibility and control, enabling developers to customize specific aspects without overhauling the entire network.
Understanding Modular Blockchains
Before delving into Celestia’s specifics, it’s essential to grasp the concept of modular blockchains and why they are pivotal in advancing blockchain technology.
What are Modular Blockchains?
Modular blockchains allow developers to break down the system into manageable components. This flexibility enables customization without revamping the entire network, providing greater control over functionality and adaptability.
Modular Blockchains vs. Monolithic Blockchains
While monolithic blockchains centralize functions on a single chain, modular blockchains offer flexibility by separating execution, consensus, data availability, and settlement layers. This customization facilitates the creation of specialized networks for various applications, making modular blockchains ideal for organizations requiring adaptable infrastructure.
How Does Celestia Work?
Celestia operates as a layer-1 blockchain focused on ordering transactions and ensuring data availability. Unlike handling smart contracts or computations, Celestia outsources these functions to rollups or other blockchains, emphasizing modularity and flexibility.
Celestia excels in data availability through Data Availability Sampling (DAS). Resource-limited light nodes check data encoding by sampling block transactions, eliminating the need for entire block downloads. Erasure encoding, involving redundancy and recovery using Reed-Solomon’s algorithm, ensures data integrity.
TIA Token Utility and Tokenomics
As Celestia’s native token, TIA serves various purposes:
- Bootstrapping new rollups: TIA facilitates quick blockchain launches without issuing additional tokens.
- Paying for blobspace: Developers use TIA to pay fees for publishing data on Celestia.
- Staking rewards: TIA holders can delegate tokens to validators to earn staking rewards.
- Decentralized governance: Holding TIA grants voting rights for governance proposals.
TIA has a total supply of 1 billion, with an initial circulating supply of 14.1%. Tokenomics include a 20% public allocation, inflation schedule, and distribution details.
