Celestia: what it is and how TIA works
Celestia is a modular data availability network for other blockchains. Its TIA token pays for data, and validators stake it to secure the network.
Vahe HakobyanEditor-in-chief
Updated Oct 6, 20263 min readFact-checked
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A blockchain usually does many jobs at once: it executes transactions, agrees on their order and stores the data. Celestia separates data availability from execution and sells that service to other chains.
What is Celestia?
Celestia is a modular data availability network. It stores and publishes transaction data for other blockchains. It does not execute those transactions or keep smart contract state itself. It separates data availability from execution, so other chains can scale while Celestia handles the data layer.
How does the TIA token work?
TIA is the native token. Chains and rollups pay fees in TIA to post data. Validators and delegators stake TIA to help secure the chain.
Who created Celestia and when?
Celestia was developed by a team that included Mustafa Al-Bassam and Ismail Khoffi. The project launched its mainnet in October 2023. That launch made TIA a live token used for posting data and staking.
How is Celestia different and risky?
Celestia differs from monolithic chains because it does not execute transactions itself. It only provides data availability, so it is not a general-purpose smart contract platform. In the US, securities laws may apply, and the IRS treats crypto as property. Staking rewards are usually taxable income.
Frequently asked questions
Celestia is neither a layer 1 nor a layer 2 in the usual sense. It is a modular data availability network that supports other chains without executing transactions itself.
No. Celestia does not execute smart contracts or run a general-purpose virtual machine. It only stores data for chains that do.
If you only retrieve data, you do not need TIA. Chains and rollups usually need TIA to pay for publishing data, and stakers need it to secure the network.
Ethereum stores data for its own rollups in blobs, while Celestia is a separate network that sells data availability to many chains.
