Modular Money: Celestia ($TIA)

Key Points:

• Celestia's Specialization: Focus on execution, consensus, and data availability.

• Modularity: Celestia differs from traditional L1’s by dividing into specific layers, enhancing scalability.

• Monolithic Challenges: Monolithic blockchains face limitations in application development, high costs, and scalability issues.

• Modularity Advantages: Autonomy, efficient development, and scalability through specialized layers.

• Data Availability

• $TIA airdrops: Manta, MilkyWay, Dymension already confirmed for staking. More ahead?

• Future prices: Bulls on top heading into 24’

A Modular Blockchain:

Modular blockchains, such as Celestia, are designed to optimize specific tasks within a decentralized network, allowing for improved scalability and adaptability. They typically consist of separate layers, each with a specialized function—such as execution, consensus, or data availability—working independently yet collaboratively, offering a balanced solution.

A Monolithic Blockchain:

Monolithic blockchains, on the other hand, offer a more traditional, all-encompassing approach where a single layer performs all necessary functions. This can provide robust security and simplicity in design but may also pose challenges in scaling and adapting to new demands without affecting the entire system.

Modularity vs Monolithic:

• Monolithic Blockchains

  • Unified layer architecture.

  • Prioritize security and decentralization.

  • Scalability challenges due to a single-system structure.

  • Bitcoin

• Modular Blockchains:

  • Break down blockchain tasks into specialized, interconnected layers.

  • Address scalability by optimizing specific modules.

  • Offer flexibility and adaptability in design.

  • Use innovative approaches like Rollups for scalability.

  • Celestia, Starknet, Arbitrum, etc.

Celestia’s Data Availability (DA):

The Data Availability (DA) layer in Celestia stands out as as the biggest solution to an ongoing challenge. In permissionless blockchain networks, ensuring accessible and verifiable transaction data is crucial. Celestia’s DA layer introduces innovative features like Data Availability Sampling (DAS)

DAS, for instance, permits Celestia’s light nodes to confirm data availability without downloading entire blocks. The system ensures that as more light nodes come online, the network sustains larger data blocks and higher transaction volumes. This allows rollups to scale with more nodes than ever possible before.

Roll-ups: How they tie in

Rollups help reduce strain on main blockchains by handling transactions off the main network. Traditional rollups use established networks like Ethereum to store transaction data. However, Celestia takes a different approach by using its own network for storing this data, taking advantage of its strong security and the ability to make data widely available.

Ethereum plans to handle its growing number of transactions by using rollups, which are a secondary layer solution. In rollups, the actual computing is done off the main Ethereum chain, and only the outcomes are recorded on it. This strategy helps to keep Ethereum's core layer less crowded, allowing more activity without major changes. Other blockchains have their own unique scaling solutions. Solana handles everything on its main layer, aiming to process a lot without additional layers. Aptos and Sui both use the Move programming language and run multiple operations simultaneously for better performance. NEAR divides its operations into smaller pieces, called shards, to process them concurrently.

Celestia's role is to offer a reliable place for rollups to store their data, making sure it's available when needed. This supports the reliability and efficiency of rollups and is part of a larger effort to make blockchains work faster and more efficiently. So what does the future Celestia ecosystem look like? thousands of rollups that use Celestia for data availability in order to scale their ecosystem smoothly.

Airdrops for staking:

It’s no known secret that staking $TIA is going to position you for a multitude of airdrops heading into this year. I would like to talk about the ones that I personally think will give a nice allocation to staking validators.

1). MilkyWay

MilkyWay, as the first liquid staking platform on TIA, has drawn comparisons to Jito, a similar platform on Solana. In a notable move last month, Jito rewarded its existing users with an airdrop, each receiving tokens worth a minimum of $10,000. While there's no confirmation that MilkyWay will follow in Jito's footsteps, the possibility always exists.

• Liquid Staking: Users stake TIA and receive milkTIA, representing their staked assets.

• TVL: MilkWay TVL has shot from ~$3M to just over $30M in just over three weeks. $DYM announcement potentially had a thing or do to do with this.

• Open Liquidity: Staked assets remain liquid, allowing for trading still.

• Automatic Compounding: The system automatically compounds staking rewards.

2). Manta

Manta network specializes in zero-knowledge applications, offering an environment conducive for ZK-enabled applications with low gas fees

• Celestia Milestone: Manta became the first major Ethereum Layer 2 (L2) to use Celestia for Modular Data Availability.

• Integration Benefits: The integration allows Manta Pacific to address increasing transactions and user demands, offering enhanced scalability.

• Ecosystem Growth: Manta Pacific is nearing $950M in Total Value Locked (TVL), 11.23M transactions and over 190 projects across their eco.

I wrote a thread on $Manta not long ago detailing what it might be worth.

3). Hyperlane

Hyperlane is a platform that enables the transfer of data across different blockchains. It supports the creation of applications that work across multiple chains by allowing the movement of tokens and execution of functions on various blockchains. This is facilitated through modular security systems and on-chain mailbox smart contracts, which manage the sending and receiving of interchain messages. Hyperlane's flexibility and security features make it a powerful tool for developing interconnected blockchain applications

Personal insights:

Please note: these are my own opinions and are in no way shape or form financial advice.

Now that we have that out of the way, my price prediction for $TIA is well over $100.

My thesis?

Well the founder, Mustafa Al-Bassam, a former member of Anonymous and one of the founders of LulzSec helped hack the CIA when he was just 16 years old.

So my question to you is, if Mustafa hacked the CIA at age 16, why would he not be able to solve the future of modular blockchains within the next 2 years?

Higher.

Concluding thoughts:

• Modular adoption is coming

• Celestia’s DA will be needed for expansion

• Staking $TIA will be a 2024 make-it big brain play