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Celestia (TIA) Cryptocurrency Guide – Forbes Advisor Australia
The native token of Celestia Blockchain, TIA has a market capitalization of more than $1.3 billion. This places it among the top 100 coins globally, but the value of the token appears to be trending downwards.
TIA started the year at around $12, hit an all-time high of over $20 in February, and was worth $6.90 at the time of this writing. Of course, it is still up more than 200% from its initial listing price of US$2.08 some 240 days earlier.
Celestia is a layer 1 blockchain, designed to be “modular” in nature with the aim of making it easier for developers to launch their own blockchain. Development time is primarily reduced 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 build an independent blockchain where:
- The “execution” layer of the blockchain, where smart contracts and transactions take place, can be separated from the consensus mechanism.
- Blockchain consensus mechanisms and data availability features leverage Celestia 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 $1.5 million seed round in 2021 and a $55 million round in 2022. Celestia is built on the Cosmos SDK framework.
What is the TIA token?
One billion TIA tokens have been created, with 20% earmarked for public allocation. Its current circulating supply is approximately 193 million. Over the next few years, more tokens due to initial investors will be gradually unlocked, which will be able to be traded freely, 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 in what is known as “blobspace” on the network’s data availability layer.
- Network validators and delegators rely on TIA to support network consensus activities, verifying and securing transactions over a decentralized network of computers, as Celestia is a proof-of-stake blockchain. Validators and delegators also earn staking rewards in the form of TIAs.
- TIA holders gain some 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 token, which also trades under the TIA symbol. The alternative TIA is a token distributed to owners of tokenized diamonds sold via the Tiamonds platform, which bills itself as the largest tokenized diamond marketplace in the world.