Celestia is the first modular blockchain network that is optimized for ordering transaction data and making it available. It solves the scalability problem of a blockchain without sacrificing decentralization and accomplishes this by separating execution from consensus and addressing data availability challenges through a technology called data availability sampling. In this article, we explore why data availability is crucial, and how Celestia addresses this. (If you're new to Celestia, we've got you covered with a quick rundown of the network in a previous article.)
Before diving into the importance of data availability, it might be helpful to have a little refresher on the basics of how most blockchains work.
Blockchains offer a range of fundamental functions that make them versatile for various applications. These functions are:
Execution: Handling transaction execution and state updates.
Consensus: Establishing agreement on transactions and their order.
Settlement: Resolving disputes and facilitating cross-chain connections.
Data Availability: Proving the publication of transactions on the network.
Monolithic blockchains, like Ethereum or Solana, which encompass all these functions in the same chain have been the dominant model in the blockchain space. However, the widespread adoption of these systems have raised concerns about the lack of specialization and high gas fees during peak usage, as seen with Ethereum, impacting both current and potential users. This issue underscores the need for more scalable, specialized and efficient solutions.
This is where Modular blockchains like Celestia enter.
Unlike other monolithic blockchains, Celestia decouples the data availability layer from the execution layer and focuses only on ordering transactions and their data availability, i.e, they solely work on proving that transactions are published on the network and are available for everyone to see. The execution and settlement of transactions are left to the respective rollup. (As a permissionless network, Celestia uses Proof-of-Stake to secure its own consensus. Like any other Cosmos network, users can help secure the network by delegating their TIA to a validator like Chorus One.)
When you make a transaction, it needs to be confirmed and added to the blockchain for everyone to see. Once the transaction is confirmed, it's put into a "mempool" where it waits for its turn to be added to the blockchain. The full nodes then download this new block, execute/compute every transaction included within this block (including yours), and make sure they are all valid. They check things like whether you have the money you're trying to send and that you're not doing anything sneaky. Full nodes therefore perform the important task of enforcing the blockchain’s rules on validators. This is where things get tricky.
Since full nodes check every transaction to verify they follow the rules of the blockchain, blockchains cannot process more transactions per second without increasing the hardware requirements of running a full node (better hardware = more powerful full nodes = full nodes can check more transactions = bigger blocks containing more transactions are allowed). But if the hardware requirements of running full nodes increased, there would be fewer full nodes and decentralization would suffer because not many people can afford to run them, and that's bad for the blockchain's security. See, the more full nodes we have, the safer the blockchain is because it would make the network more decentralized if the voting powers were well distributed. If there are only a few, we'd have to trust them a lot more, and that's risky because it's more centralized.
Now, here's where ‘data availability’ comes in. It's like making sure the information in the transactions is available for everyone to check. If the people adding new blocks to the blockchain don't share this info in the first place, it's a problem. Full nodes can't do their job of checking things, and we'd have to trust the block creators more. So, data availability is all about keeping things open and transparent to maintain trust and security in the blockchain. It's a key part of how blockchains work and stay safe.
Celestia's primary focus on data availability (DA) enables any rollup to utilize it to solve the data availability issue, while still maintaining its independent execution environment. Due to its modular nature, any language or virtual machine can be used to build on top of Celestia.
Celestia solves the issue by using a technology called ‘data availability sampling’ - a mechanism that allows light nodes to verify data without needing to download the entire block data. Essentially, light nodes perform multiple rounds of random sampling on small portions of block data. As they conduct more rounds of sampling, their confidence in the data's availability progressively grows until it meets a specified threshold. Once this threshold is reached, the block data is considered available and valid.
The key advantage is that as more light nodes participate in this sampling process, the network's capacity to handle data increases. This, in turn, permits the scaling of block sizes without a corresponding increase in the cost of verifying the blockchain. In essence, it's akin to having a larger number of independent verifiers cross-checking the blockchain's integrity,which makes the whole system better and faster.
As a permissionless network, Celestia uses Proof-of-Stake to secure its own consensus. Like any other Cosmos network, users can help secure the network by delegating their TIA to a validator like Chorus One. Check out our guide to stake your TIA with Chorus One using the Keplr wallet.
Key information
Celestia is a modular network that makes it easy for builders to launch their own blockchain by focusing solely on data availability. It allows developers to easily deploy blockchains on top of Celestia, as easy as deploying smart contracts. This accessibility empowers individuals to create their own unique rollups and blockchains, serving a multitude of purposes and ensuring scalability for a broader audience. Celestia keeps decentralization top of mind with their architecture, design choices and innovations. In addition, it significantly reduces the cost for builders to deploy their own blockchain while accelerating execution layer research and creativity. We’re excited to watch their ecosystem launch and grow in 2023 and beyond!
Resources:
Understand everything you need to know about Celestia in 10 questions
Check out their ecosystem
Check out Celestia’s docs to start building on Celestia
About Chorus One
Chorus One is one of the biggest institutional staking providers globally operating infrastructure for 45+ Proof-of-Stake networks including Ethereum, Cosmos, Solana, Avalanche, and Near amongst others. Since 2018, we have been at the forefront of the PoS industry and now offer easy enterprise-grade staking solutions, industry-leading research, and also invest in some of the most cutting-edge protocols through Chorus Ventures.
Celestia is the first modular blockchain network that is optimized for ordering transaction data and making it available. It solves the scalability problem of a blockchain without sacrificing decentralization, and accomplishes this by separating execution from consensus and addressing data availability challenges through a technology called data availability sampling.
To simplify Celestia's purpose and the essential aspects of its modular design, our Research Expert, Kam Benbrik, delves into the topic by answering ten crucial questions. Dive in below!
In a monolithic blockchain, tasks are concentrated within a single stack, where nodes handle four core functions, including consensus, data availability, settlement and execution.
On the other hand, modular blockchains specialize by delegating tasks to separate layers, forming part of a broader "modular stack" for customized objectives. This modular approach enhances scalability and offers developers more control and sovereignty to tailor their execution environments to their project's needs.
Celestia's data availability layer introduces innovative features like data availability sampling (DAS) and Namespaced Merkle trees (NMTs). DAS allows light nodes to verify data without downloading entire blocks, reducing costs compared to monolithic chains, while NMTs enable execution and settlement layers on Celestia to download transactions that are only relevant to them. Celestia offers its data availability layer to other chains for publishing data by paying for blobspace. Backed by Tendermint Consensus and a sovereign validator set, Celestia ensures further scalability and decentralization of the network.
A significant challenge that monolithic blockchains, like Ethereum, face in terms of data availability is the high cost of publishing data. For instance, Arbitrum One pays approximately $112,000 per day to Ethereum for its data availability requirements, translating to an average cost of $0.15 per transaction. In contrast, Celestia offers a cost-effective solution for publishing data. It provides an alternative security model and economic advantage by allowing costs to scale with the number of nodes, avoiding the capacity limitations of Ethereum. This makes Celestia an appealing option for both data availability and serving as a foundational layer within an ecosystem.
Data availability sampling allows light nodes to confirm data availability without the need to download an entire block, resulting in efficient and cost-effective verification of large blocks. It works by randomly selecting portions of a block for users to download and check, ensuring that data is available with a high level of confidence. This approach not only reduces the resource requirements. However, The number of light nodes needed also depends on the block size, larger blocks require more light nodes. One important assumption is that light nodes should be connected to at least one honest full node for DAS to work effectively
Celestia ensures decentralization through its permissionless Proof-of-Stake structure using the Cosmos SDK and Tendermint consensus.. Much like other networks within the Cosmos ecosystem, Celestia allows users to actively participate in securing the network by delegating their tokens (TIA) to validators, such as Chorus One. This PoS mechanism empowers users to play a crucial role in the network's security, governance decisions and decentralization, making it a collaborative and community-driven ecosystem.
Celestia's modular design makes it easier for users to confirm that all the data in a block is available without downloading the entire block. Instead, it uses a technique called data availability sampling, where light nodes only check small, random parts of the block. This way, it's much more efficient than traditional monolithic blockchains where everyone has to download the entire block. The more nodes do this sampling, the better the network can handle data, leading to faster and more secure data verification. This approach improves scalability compared to monolithic blockchains.
Two standout applications that utilize Celestia's data availability layer include:
8. What are the complexities of modular blockchains like Celestia, and what developments or improvements can we anticipate in the near future?
Modular blockchains like Celestia come with added complexity due to the need for advanced mechanisms such as data availability sampling and fraud proofs to ensure the security of the network. These complexities are essential for maintaining the flexibility and scalability that modular blockchains offer. Additionally, the success of Celestia and similar projects depends on attracting projects and rollups to build on top of them.
9. What is the role of $TIA, Celestia’s native token?
The native token of Celestia, known as TIA, plays a multifaceted role within the ecosystem.
Staking: Firstly, TIA is used for staking, allowing users to actively participate in securing the network through delegation to validators like Chorus One. This proof-of-stake (PoS) mechanism enhances network security and decentralization, fostering a collaborative and community-driven environment.
Governance: Secondly, TIA is utilized for governance purposes, enabling users to create, engage in, and vote on proposals that shape network design and functionality.
Paying for blobspace: Lastly, Layer 1 and Layer 2 networks can use TIA to pay for Celestia blockspace, facilitating the publication of their data on Celestia's data availability layer. This comprehensive utility makes TIA a vital component of the Celestia ecosystem. (For detailed information, refer to https://docs.celestia.org/learn/tia)
10. What is the difference between sovereign roll ups and smart contract roll ups?
Sovereign rollups, such as those on Celestia, differ from smart contract rollups like Ethereum in how they handle settlement and their relationship with the underlying blockchain. Smart contract rollups post their blocks to Ethereum through an enshrined smart contract, effectively creating a bridge between the rollup and Ethereum. Ethereum acts as a 'baby chain' for the rollup, and the bridge contract interprets and processes the rollup's data. In contrast, sovereign rollups, like those on Celestia, directly submit their blocks as raw data to the chain without relying on smart contracts. The Celestia consensus and data availability layer don't interpret rollup data, and the rollup's blocks are independently managed by its nodes. This approach provides autonomy to rollup chains, and they determine their canonical chain without a bridge to the settlement layer, allowing for greater flexibility and independence.
Wrapping Up
Celestia is a modular network that makes it easy for builders to launch their own blockchain by focusing solely on data availability and allows developers to easily deploy blockchains on top of Celestia, as easily as deploying smart contracts.
Users can get involved with TIA by securing the network through delegation to validators like Chorus One and enhancing the collaborative and community-driven environment of the network. Check out our comprehensive guide on how you can stake your TIA with Chorus One!
About Chorus One
Chorus One is one of the biggest institutional staking providers globally operating infrastructure for 45+ Proof-of-Stake networks including Ethereum, Cosmos, Solana, Avalanche, and Near amongst others. Since 2018, we have been at the forefront of the PoS industry and now offer easy enterprise-grade staking solutions, industry-leading research, and also invest in some of the most cutting-edge protocols through Chorus Ventures.
We’re immensely proud to support staking for Celestia - the first modular blockchain network that is optimized for ordering transaction data and making it available- as a genesis validator!
Celestia is a modular network that makes it easy for builders to launch their own blockchain by focusing solely on data availability. It allows developers to easily deploy blockchains on top of Celestia, much like deploying smart contracts. This accessibility empowers individuals to create their own unique rollups and blockchains, serving a multitude of purposes and ensuring scalability for a broader audience.
Celestia's data availability layer introduces innovative features like data availability sampling (DAS) and Namespaced Merkle trees (NMTs). DAS allows light nodes to verify data without downloading entire blocks, reducing costs compared to monolithic chains, while NMTs enable execution and settlement layers on Celestia to download transactions that are only relevant to them. Celestia offers its data availability layer to other chains for publishing data by paying for blobspace.
We've covered everything you need to know about Celestia in 10 questions - find it here!
As a permissionless network, Celestia uses Proof-of-Stake to secure its own chain. Like any other Cosmos network, users can help secure the network and engage in governance by delegating their TIA to a validator like Chorus One.
The following guide explains how you can stake your TIA easily with Chorus One.
TL;DR
Step 1: Login to https://wallet.keplr.app/ and search for Celestia
Step 2: Select the Chorus One validator
Step 3: Enter the amount of TIA you want to stake
Step 4: Approve the transaction. You have successfully staked TIA with Chorus One!
*Note that this guide has been written using the Celestia Mocha Testnet as it was written prior to Mainnet, however the steps remain the same.
After a few seconds, the transaction will be completed. You have now successfully staked TIA with Chorus One using Keplr!
If you have any support queries, please send a request at https://support.chorus.one/hc/en-us. If you would like to learn more about Celestia or start staking TIA with Chorus One, please reach out to us at staking@chorus.one
About Chorus One
Chorus One is one of the biggest institutional staking providers globally operating infrastructure for 45+ Proof-of-Stake networks including Ethereum, Cosmos, Solana, Avalanche, and Near amongst others. Since 2018, we have been at the forefront of the PoS industry and now offer easy enterprise-grade staking solutions, industry-leading research, and also invest in some of the most cutting-edge protocols through Chorus Ventures.
We've developed a unique bridging solution that makes it possible for users to move their dYdX tokens to Cosmos, AND stake the tokens - all in just one go! To bridge and stake your DYDX, visit our novel bridging page
Who is this guide for: Users who wish to move their DYDX tokens from Ethereum to Cosmos + stake their tokens with Chorus One.
If you already have your DYDX tokens in the Cosmos ecosystem, you can stake them directly using your Keplr wallet, as explained here.
Step 1: Connect your Ethereum and Cosmos Wallets on Chorus One’s bridging page
Step 2: Enter the amount you want to Bridge and Stake
Step 3: Approve the Chorus One Bridge to interact with your wallet in order to stake your DYDX tokens
Step 4: Pre-Sign the transaction on your Cosmos/Keplr Wallet
Step 5: After 48 hours, your staking transaction will be completed through Chorus One!
Introducing Chorus One's Bridge and Stake solution for DYDX
The DYDX token, part of dYdX v4, serves a multi-faceted role. It empowers users to actively engage in governance decisions while also playing a crucial role in maintaining the network's operations and enhancing its security by staking their tokens.
To use and stake dYdX v4 tokens, the dYdX Chain needs to onboard users from various platforms, including rollups, Ethereum L1, other app-chains, and centralized exchanges, to its Cosmos version. Traditionally, bridging tokens from Ethereum to the Cosmos ecosystem has been a cumbersome activity.
To simplify the process and make staking on Cosmos a breeze for our customers, we have developed a novel solution, using dYdX's original bridging smart contract, that enables you to move your DYDX tokens from Ethereum to Cosmos in a swift, seamless transaction. Not only that, our bridging solution also allows you to stake your DYDX in the same flow, providing added convenience and efficiency!
To recap, dYdX v4 is the latest iteration of dYdX, one of the most prominent decentralized exchanges and premier trading platform for cryptocurrency. The DEX initially launched as an Ethereum-based Layer 2 solution and has now made a significant move by transitioning to its dedicated blockchain, known as the dYdX Chain (or dYdX v4), built using the Cosmos SDK. We've compiled all the essential information about the chain, complete with an in-depth exploration of their move to Cosmos and Chorus One's ongoing involvement with dYdX since the very outset. Check it out here.
1- Bridge & Stake in just 1 transaction: Our bridge offers a remarkably streamlined process for transferring DYDX tokens from Ethereum to Cosmos, setting a new standard in the industry. But it doesn't end here. You can take it a step further by staking your DYDX within the same transaction, allowing you to bridge and stake your DYDX simultaneously in one smooth action.
2- Simplified Onboarding: Our solution enables users from diverse platforms, including rollups, Ethereum L1, other app-chains, and centralized exchanges, to seamlessly join the dYdX Chain on Cosmos.
3- Security Assurance: Our bridging solution is underpinned by a meticulously audited smart contract, ensuring a straightforward and secure staking experience for users. The bridge contract underwent a thorough audit during its development by dYdX. Additionally, when it comes to our frontend and backend, we've adhered to strict secure software development practices as outlined by ISO requirements.
With an understanding of why we developed this bridging solution and how it enhances your staking experience, let’s proceed to a step-by-step walkthrough of utilizing our bridge.
*Since DYDX inflation goes to traders, dYdX stakers, in contrast, will receive 100% of the trading fees that are paid out in USDC.
2. To begin staking DYDX tokens with Chorus One, visit Chorus One’s bridging page and connect a) the Ethereum wallet that has DYDX tokens and b) the target Cosmos wallet where you wish to transfer the tokens to.
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The next step helps you to pre-sign the staking transaction so that the tokens will be staked as soon as they reach the dYdX Chain, and you will be notified by us when the process has been completed if you choose to submit your email address.
We’re happy to answer any questions you may have! For any support queries, please visit here. Alternatively, if you’d like to learn more about staking with Chorus One, get started with staking, or anything else, please reach out to us at staking@chorus.one
About Chorus One
Chorus One is one of the biggest institutional staking providers globally operating infrastructure for 45+ Proof-of-Stake networks including Ethereum, Cosmos, Solana, Avalanche, and Near amongst others. Since 2018, we have been at the forefront of the PoS industry and now offer easy enterprise-grade staking solutions, industry-leading research, and also invest in some of the most cutting-edge protocols through Chorus Ventures.
