One interesting topic in blockchain technology is the modular concept, particularly exemplified by Celestia($TIA ). Traditionally, blockchains have been monolithic, where consensus, execution, and data availability are tightly integrated into a single chain.
Celestia, however, breaks this paradigm by allowing these components to be separated and optimized. The result is a system that is faster and significantly more scalable than older monolithic chains.
However, because Celestia primarily focuses on Data Availability (DA), it doesn't inherently support smart contracts; these must be built on another layer. To draw an analogy with Ethereum ($ETH ), imagine ETH as a dense and complete city, while Celestia is like an empty plot of land that already has road infrastructure. For instance, developers can build their own blockchain (an "app-chain") and use Celestia as their data layer. This proposed system is ideal for applications that desire transparency at the infrastructure level using blockchain but require privacy at the application level.
For example, since data on Celestia is open and public, it must be encrypted before being inserted if confidentiality is desired.
As with other promising blockchain concepts, the price of Celestia (TIA) has fallen by 87% since October 2023. This decline is largely attributable to token unlocks, which have prevented its recovery to date.
It's important to clarify that our discussion is about technology, not financial trading advice. For a more comprehensive understanding, blockchain technology extends far beyond just trading.