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Celestia (TIA) Cryptocurrency Guide – Forbes Advisor Australia
The native token of the Celestia BlockchainTIA has a market cap of over $1.3 billion. This puts it in the top 100 coins globally, but the token appears to be declining in value.
TIA started the year at around $US12, hit an all-time high of over $US20 in February, and was trading at $US6.90 at the time of writing. That’s still over 200% from its initial listing price of $US2.08 some 240 days earlier.
Celestia is a Layer 1 blockchain, designed to be “modular” in nature with the goal of making it easier for developers to launch their own blockchain. Development time is reduced primarily by allowing developers to combine existing rollup technology options (i.e. Layer 2 scaling solution) to create their own custom stack. Celestia allows you to create an independent blockchain where:
- The “execution” layer of the blockchain, where smart contracts and transactions occur, can be separated from the consensus mechanism.
- The blockchain’s consensus mechanisms and data availability features leverage Celestia’s infrastructure, including its network validators.
The Celestia project was started in 2019 by co-founders Mustafa Al-Bassam and Ismail Khoffi and has attracted significant venture capital investment, including a US$1.5 million seed funding round in 2021 and US$55 million raised in 2022. Celestia is built on the Cosmos SDK framework.
What is TIA token?
One billion TIA tokens have been created, with 20% for public allocation. Its current circulating supply is approximately 193 million. Additional tokens owed to early investors will be gradually unlocked over the next few years, and will be freely tradable, with the first unlocking event in October this year.
The role of the TIA token in the Celestia blockchain is threefold:
- Developers use TIA to pay gas fees on transactions and to publish data to what is known as “blobspace” on the network’s data availability layer.
- Network validators and delegators stake TIA to support network consensus activities by verifying and securing transactions across a decentralized network of computers, as Celestia is a proof-of-stake blockchain. Validators and delegators also earn staking rewards in the form of TIA.
- TIA holders gain certain governance powers, being able to propose and vote on proposals to change a subset of network parameters.
Celestia’s TIA token should not be confused with the Tiamonds project’s token, which also trades under the symbol TIA. The alternative TIA is a token issued to owners of tokenized diamonds sold through the Tiamonds platform, which claims to be the world’s largest tokenized diamond marketplace.