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- 1 Celestia (TIA) is a modular data availability (DA) network that makes it easy for everyone to launch their blockchain.
- 2 The network is used by Rollups and L2s, for publishing and making transaction data available for anyone to download.
Celestia permits other blockchains to use it as a data availability and consensus layer. It is used as a data availability layer. The blockchain can securely publish their transactions on Celestia, permitting their nodes to resin slim on a growing blockchain.
Celestia solves the problem of data availability (DA) sampling. It is important for the security of any blockchain. Users can inspect the data and verify it. In monolithic blockchain, usually downloading all the data available is done by users to verify it. But, as the blocks get bigger, it is impractical for them to download data. This means they cannot verify the chain. Modular chains solve this problem making it possible for users to verify very large blocks using a technology called data availability sampling.
What is Modular Blockchain and Data Availability Sampling?
Modular blockchains are new blockchain designs in which instead of doing everything the blockchains specialize and optimize to perform the required function. This increases the scalability, flexibility, and interoperability. This enables the developers to build blockchain applications for mass adoption.
Celestia light nodes verify the efficiency of the data, this is called data availability sampling (DAS). Instead of downloading the whole data, the light nodes download a tiny portion of each block. DAS permits Celestia to scale with the number of users (light nodes). So, as the number of light nodes grows with time, the network can scale the data throughput needed for Millions of rollups without compromising on the security.
Rollups and their working with Celestia?
Rollups are a new type of blockchain. They offload some of their data to layer 1 like Celestia. This means they publish data on Celestia which is available for rollup users to download. For this, the rollups are provided with Celestia’s security
Advantages of Using Celestia
Celestia Usage has certain advantages like
- Fast Deployment of blockchain: The user can build their chain or smart contract on Celestia’s public testnets with ease.
- Use any VM: The users can transform nearly any VM into their sovereign chain.
- It supports more number of users and has low costs and dynamic throughput.
TIA Token Market Analysis, Utility, and Tokenomics
TIA is the native token of the Celestia network. It is a deflationary cryptocurrency as with time, its supply decreases. It performs three functions: reflections, rebalancing, and burn.
Reflection: This means 5% of fees redistributed to all the existing holders.
Rebalancing: At Uniswap 2.5% fee is sold by the smart contract into LCX. The obtained LCX token will be added to the long-term LCX company reserve.
Burn: 2.5% of the TIA Tokens are burned.
It shows its utility as paying fees on the platform. The developers must pay fees in TIA for Celestia’s data availability solutions. TIA is used to pay as a gas token and currency. Celestia is based on proof-of-stake so uses TIA for staking.
Tokenization of TIA tokens shows that the distribution is done in a fair community-driven way without a token sale and an initial coin offering (ICO). In “Own to Earn”, model TIA tokens will be distributed to the owners of Tiamond. In this model, the owner will receive tokens over 1 Million minutes with a rate of 1 TIA per minute for each Tiamond NFT. After the initial token offering the distribution starts directly and sale on the LCX platform.
In its own-to-earn model, the TIA tokens will be distributed to the Tiamond NFT owners over a fixed period. The owners of the Tiamond NFT will get a fixed supply of TIA tokens automatically. The TIA Tokens can be claimed by the owner at the Tiamonds.com platform.
Celestia’s TIA token has a total supply of 1 Billion tokens. The token is designed to inflate at 8% in its first year. TIA inflation is designed to decrease by 10% each year until the annual inflation floor reaches 1.5%.
TIA token shows the community first approach and is therefore a dedicated governance system. The governance will allow the submission of votes in making the main decisions that govern the Diamonds project. The key decisions include:
- They can make decisions regarding the amount of Tiamonds NFT created.
- The decision regarding the distribution of the TIA tokens rewards to each Tiamond NFT.
- The decision of the amount and variety of the Diamonds to be tokenized.
Market analysis shows that the token has a market cap of $2,027,541,537. It has a circulating supply of 150, 906,541 TIA. The token has a total supply of 1,009,863,014 TIA. The fully diluted market cap is $13,539,143,351.
How to Claim TIA Tokens
Owners of Tiamond NFTs can claim their TIA Tokens through the dedicated Tiamonds platform. The tokens will be granted to the Tiamond NFT automatically. While claiming TIA Tokens the gas fees and the on-chain transaction fee will be applied. The owner of the Tiamonds NFT may claim TIA Tokens whenever needed or umpteen times but will need to cover the Ethereum gas fees.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
