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Celestia (TIA) is a cryptocurrency and a blockchain network that has gained notoriety for its innovative approach to blockchain architecture. Unlike traditional "monolithic" blockchains (such as Ethereum or Bitcoin), which handle all main functions on a single layer, Celestia is based on a modular design.
What is a modular blockchain?
A traditional or monolithic blockchain integrates four key functions into a single network:
Execution: Processing transactions.
Consensus: Agreement on the order of transactions.
Data Availability: Ensuring that transaction data is available for anyone to verify.
Settlement: Resolving disputes and bridging between chains.
This all-in-one design often creates bottlenecks and scalability issues. Celestia solves this problem by specializing in a single function: data availability.
Celestia acts as a "Data Availability Layer" (DAL). This means it takes care of ordering and publishing transactions but delegates execution to other blockchains.
The TIA Token
TIA is the native token of the Celestia network and serves several crucial functions within the ecosystem:
Payment for data space: Developers who create their own blockchains on Celestia pay fees in TIA to publish transaction data on the network.
Security and Staking: Celestia uses a proof-of-stake mechanism. Users can stake their TIA tokens to help secure the network and, in return, receive rewards.
Governance: TIA holders can participate in the governance of the network, voting on proposals that affect the future of the protocol.
