Altcoin
Celestia’s mainnet debut affects native token TIA in this manner
Posted:
| Last updated: April 3rd, 2024
Journalist
- TIA became the most searched crypto asset on CoinMarketCap.
- Going forward, it would become a key component of the Celestia ecosystem.
The highly anticipated Celestia [TIA] blockchain went live on mainnet recently, becoming the first-of-its-kind modular data availability network. Along with the launch, the native token TIA was airdropped to developers, researchers, and other eligible participants as planned.
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Heavy demand for TIA
The launch was well received in the market. As of this writing, TIA was exchanging hands at $2.24, marking a jump of 6.63% in the last 24 hours, according to CoinMarketCap data.
Moreover, it became the most searched crypto asset on CoinMarketCap, indicative of the hype around the token.
The airdrop, also called the Genesis Drop, brought 6% of the total supply into circulation.
Understanding the tech behind Celestia
Data availability refers to the ability of users to download any data from a blockchain at any given point of time. It is a critical security feature, allowing verification of transactions on a distributed ledger.
However, as the network grows in size, it imposes considerable restrictions on this capability. This is one of the major factors hindering the scalability of networks like Ethereum [ETH] and Solana [SOL].
Enter modular networks.
In contrast to the traditional networks where everything is concentrated on a single chain, modular networks break down the components of the system into smaller, more manageable pieces. These modular layers perform specific core functions such as execution, settlement, and data availability.
Celestia is the modular data availability layer, focusing only on making the data for transactions available. They make it possible for users to verify very large blocks using a technology called data availability sampling. This removes the need to download the block, allowing for greater efficiency.
How much are 1,10,100 TIAs worth today?
As far as TIA was concerned, it was set to act as the governance token of the ecosystem, enabling participation in network consensus.
However, its most important use case was that developers looking to access Celestia for its data availability feature would have to pay the fees in TIA.
