Coin Guide: Celestia ($TIA)

Celestia launched to major fanfare when its mainnet went live on October 31st 2023. To coincide with its mainnet launch, Celestia issued $300 million of its native token called $TIA.The project has proven to be a smash hit among crypto investors, with $TIA prices going on a 900% run from $2 to $20.85 at its all-time high on February 10th 2024.

While Celestia has since cooled off since, the crypto cognoscenti remain bullish on $TIA’s prospects in the coming years given the fact that it could fill a serious need. Celestia’s main value proposition is providing data availability as a service to other blockchains and apps, ensuring that the data is there and that the data regarding transaction details have been published, solving a growing issue in blockchain technology.

That said, this guide will answer everything you wanted to know about Celestia—and how to buy it on Houdini Swap. 

What is Celestia?

Celestia is a modular data availability network that enables users to launch their own blockchains due to its ability to securely scale with the number of users simultaneously. Rollups and Layer-2 scalability solutions leverage Celestia as a network to publish transaction data for other blockchains and apps. Celestia serves as a high-throughput data availability service that can be verified with light nodes. 

Through its modular blockchain stack, anyone could launch a blockchain on Celestia without needing a validator set. Celestia’s modular architecture makes the blockchain more efficient, supporting a higher throughput, and attaining faster transaction speeds in the process. Unlike Ethereum and other similar Layer-1 blockchains, Celestia supports only the consensus layer, instead of supporting both consensus and execution on separate layers. Moreover, Celestia is designed for interoperability with blockchains focused on operating on the execution layer.

Celestia: A brief history

Celestia was first called LazyLedger, founded in 2019 by Mustafa Al-Bassam, Ismail Khoffi, and John Adler. The ideas that eventually served as the foundation of Celestia were first conceptualized between 2018 and 2019 in a series of papers which Al-Bassam, Alberto Sonnino, and Ethereum co-founder Vitalik Buterin collaborated on. The project team issued the LazyLedger whitepaper in May 2019, and work started on the network that would integrate the concepts expounded on the aforementioned papers. 

The project team would then eventually launch the Celestia Foundation to help bootstrap and grow the network, as well as fund research and secure funding for the ecosystem. The founding members of the organization’s governing council are Mustafa Al-Bassam, Ismail Khoffi, Batuhan Dasgin, and Reinhold Wohlwend.

Celestia’s testnet launched on May 25th 2022, followed by an incentivized testnet on March 7th 2023. September 26th 2023 saw the genesis airdrop of 60 million $TIA tokens representing 6% of the initial $TIA token supply. The tokens were released once the Celestia mainnet was launched on October 31st 2023.

What are the key features of Celestia?

Here’s a quick rundown on Celestia’s core features:

• Data Availability Sampling (DAS). Celestia employs light nodes for data availability and integrity, which is a scalable approach. As more light nodes join the network to sample data, the block size increases and enables a higher throughput.
• Modular architecture. Celestia separates the consensus and application layers, enabling more scalability and customization.
• Sovereign rollups. Celestia’s sovereign rollups enable the creation of independent and scalable applications, allowing devs to create diverse ecosystems.
• Trust-minimized bridges. Trust-minimized bridges connect Celestia to other blockchains. They help reduce security vulnerabilities and enhance interoperability. 
• Efficient resource pricing. The blockchain’s fee mechanism rewards users for helping secure the network and incentivizes efficient resource consumption.
• Proof-of-stake (PoS) consensus mechanism. Celestia uses a proof-of-stake consensus mechanism, which is considered more environmentally sustainable and energy-efficient.

What are the use cases of $TIA?

Celestia’s native token, $TIA, is used in the following ways within the broader Celestia ecosystem.

• Transaction and gas fees. $TIA is used to pay transaction fees that incentivize network participants and ensure the optimal operation of the blockchain. It’s also used to pay for gas fees, which enable developers to operate their blockchains without having to issue a native token and focus on building their app or execution layer.
• Staking. Holders can stake $TIA to secure the network and enable consensus formation. As a proof-of-stake blockchain, users can delegate their Celestia holdings on validators and earn staking rewards in return. 
• Governance. Celestia holders can also participate in decentralized governance, such as voting on proposals, network parameters, protocol upgrades, managing the community pool, and other measures that dictate the future direction of the project.

How to store Celestia?

You can store $TIA tokens using the following wallet options that support the Celestia blockchain:

• Keplr Wallet. Keplr Wallet is the leading leading, IBC-enabled wallet for the Cosmos ecosystem. It enables you to store, send, stake, and manage digital assets as well as interact with decentralized apps and decentralized finance protocols native to the Cosmos Hub. It is by far the most popular wallet to use for Cosmos and Cosmos-adjacent projects like Celestia. 
• Leap Wallet. Leap Wallet is a wallet for the Cosmos Hub ecosystem that offers an intuitive interface supporting storage, sending, staking, and managing $TIA tokens. Leap Wallet is available as a browser extension and as an iOS and Android mobile app.
• Cosmostation Wallet. Cosmostation Wallet is a non-custodial mobile wallet supporting 50+i interchain networks including Celestia. 
• Ledger Hardware Wallet.: Ledger is a hardware wallet device developed to store cryptocurrency offline, isolating users’ private keys from devices that are connected to the internet for optimal security. Ledger works with Cosmos and enables users to transact and stake $TIA through the Keplr Wallet interface. 
• Centralized exchange wallets. Centralized exchanges such as Binance or Coinbase enable users to store their $TIA tokens directly at the exchange for maximum ease. However, the tradeoff for convenience and removing the hassle of self-custody and managing private keys is that users rely on the platform to store their digital assets on their behalf.

These wallet options all offer secure and intuitive ways to store your $TIA and participate in a variety of staking and DeFi options available on the Cosmos Hub ecosystem.

How to stake Celestia?

Interested in staking your Celestia tokens? Here’s how you can help secure the Celestia network and earn staking rewards in return:

1. Make sure your wallet supports $TIA. Choose the compatible wallets outlined in the previous section, such as Keplr or Cosmos Wallet to start staking. 
2. Transfer your $TIA tokens to your $TIA-compatible wallet. 
3. Once you have successfully funded your $TIA-compatible wallet, you can then delegate your tokens to an existing validator or run a validator node yourself.
   • Delegating $TIA to Validators. If you wish to stake by delegating your tokens to a validator, find a reputable validator on the Celestia network and delegate your desired amount of $TIA tokens to them. You will then earn staking rewards based on the number of $TIA tokens you choose to delegate. Some Cosmos-centered wallets such as Keplr or Cosmos Wallet may offer built-in staking that simplifies this process. Centralized exchange wallets, meanwhile, may offer staking on their platform.
   • Become a Celestia Validator node. If you have the requisite technical expertise and stake, you may join the Celestia network as a validator. Validators assist to protect the network by participating in block production and consensus. However, being a validator usually demands a specific number of $TIA tokens as a minimum staking requirement.
4. Once you’ve delegated or become a validator, your $TIA tokens will be staked, and you’ll be able to receive staking rewards. The exact incentives gained will be determined by a variety of criteria, including the quantity of tokens you stake and the network’s total staking activity.

What are examples of projects in the Celestia ecosystem?

Here are several examples of projects in the Celestia and Celestia-adjacent ecosystem.:

• Alpha Dune. Alpha Dune is a gaming-specific meta-progression layer enabling players to enjoy a frictionless Web3 gaming experience without the traditional complexities associated with blockchain gaming on desktop and mobile devices.
• Aori. Aori is a next-generation on-chain trading application that:streamlines clearing between counterparties at CEX speeds without the related risks involved. With Aori, users can sell large amounts of tokens without having to manually trade them on exchanges. The platform also integrates with DeFi primitives.
• AltLayer. AltLayer is a decentralized protocol that facilitates the launch of native and restaked rollups with both optimistic and zk rollup stacks.
• Dymension. Dymension is a Layer-1 blockchain platform that brings users and liquidity together through modular blockchain systems. 
• Numia. Numia is an on-chain Data Indexer, Data Science, API and RPC provider that enables devs to build apps.

How to stay safe when navigating the Celestia ecosystem

The following is a list of practical tips to stay safe when using Alephium and interacting with dapps on the Alephium blockchain. 

• Be wary of social engineering. Social engineering is responsible for over 95% of account security breaches. This can happen through email, messaging apps, social media, direct messages on forums or social networks, or anywhere with an inbox. If you receive a message asking for information that shouldn’t be shared or a deal that sounds too good to be true, always scrutinize the source before engaging with it. Be skeptical of attachments or emails that may ask you to go to a website. These may be attempts to lure you to compromised sites designed to steal your information.
• Practice proper key management. Never share your 12-word private key to your wallet address with anyone—period. Keep multiple copies of your keys in secure places. This will keep your assets safe from theft.
• Keep your software updated. To protect yourself, use the most recent version of software available and upgrade immediately (or as soon as possible) when a security alert is issued. This applies to your computers, mobile devices, cryptocurrency wallets, and everything else that may be associated with your identity or digital assets.
• Keep your account secure.  Web3 and crypto users should implement two account security measures to mitigate blockchain risks. Firstly, enable 2-factor authentication and use a code generator or U2F hardware key. Secondly, be cautious of account recovery methods and avoid SMS. If not yet, use an authenticator app or hardware key for personal email accounts and token management.

What are the future prospects of Celestia?

Celestia is undoubtedly a game-changer in the blockchain industry with its unique approach to scalability and decentralized application development. With its modular architecture that separates transaction execution from consensus and data storage, Celestia offers significant opportunities for devs to create flexible, scalable solutions.

One of the catalysts for Celestia’s growth was its recent September 2024 funding round that drew $100 million from Bain Capital. The capital injection boosted Celestia’s total funding to $155 million, indicating massive institutional interest in the project. Besides Bain Capital, notable investors such as 1kx, Syncracy Capital, Robot Ventures, and Placeholder contributed to the recent funding round. 

With Celestia’s lofty goal of revolutionizing the industry with its modular approach—as well as offering more flexibility, efficiency, and scalability compared to legacy blockchains—the funding round will enable Celestia to bootstrap its roadmap and push the envelope of decentralized tech.

How to buy Celestia on Houdini Swap

Houdini Swap is a liquidity aggregator that enables you to perform cross-chain swaps directly from a single interface. The platform enables users to swap over 4,000 tokens and 8 million crypto pairs, including Celestia, while offering the best-in-class privacy possible through its private swap feature. Likewise, its standard swap transaction offers significantly improved privacy compared to conventional CEX and DEX platforms. Here’s how to buy $TIA on Celestia.

1. Navigate to the Houdini Swap website.Go to the Houdini Swap website.
2. Select your desired crypto pair. Select the type of token you wish to swap and the token you wish to receive. Make sure you have some crypto to facilitate your $TIA purchase. 
3. Enter the amount $TIA you wish to receive. Then, enter the amount of $TIA tokens you wish to receive; Houdini Swap will then automatically find the lowest-cost option out of its exchange partners. 
4. Enter the receiving wallet address. Then, indicate the receiving wallet address, ensuring that it is on the same network.
5. Complete the transaction. Review the transaction details such as the pair, amount, wallet address, and network. Once everything checks out, click on “Swap” to complete your transaction. You can either connect your wallet to Houdini Swap or you may choose the wallet-free swap by sending the tokens you wish to swap to the wallet address indicated by Houdini Swap on the screen. 
6. Monitor the transaction status. Most standard swaps on Houdini swap take no more than 5 minutes to complete, while the private swap option can take anywhere up to 20-30 minutes to complete.

Celestia ($TIA) is available on Houdini Swap.