One great advantage that comes with those that are focused on the world of blockchain development is how rapid the development ends up becoming. How quickly options become available and how flexible the community is when it comes to working to create a different future with Web3.
First, we saw the simplicity of building our own tokens, then how it became possible to build out applications on different types of chains and easily launch our own smart contracts. With Celestia, one is now able to easily build out their own blockchain for whatever purpose they desire.
Why Celestia started
It was inevitable that there would be a demand for scalable new blockchains to be built easily in this growing ecosystem. In the past, people would either be dependent on building on a specific blockchain or building a layer (known as layer 2) on top of a blockchain to work with it. With Celestia, it’s designed to allow anyone who needs to deploy their own blockchain to be able to. That’s the mission which is behind Celestia as a key part of the entire community.
They were founded in 2019 with the intent to build out these modular blockchain networks that are meant to solve the issues that arose from the scalability limitations on Solana and Ethereum.
How does it all work?
With a scalable modular architecture, Celestia works to break away from the monolithic systems that have been plaguing existing blockchains that are starting to age. With high gas fees and slow transaction times that have been experienced on these chains, Celestia works to try to eliminate that.
Developers are able to build out their own virtual environments where they can execute their platforms as necessary. Even with this virtual machine-style systemic architecture, the security still rolls up all the way to Celestia’s consensus mechanisms. Before there would need to be a hard fork (a split from the main system architecture) when launching a new application update. Celestia also works to eliminate that.
It also provides consensus on-demand functionality, meaning there’s no need to build out another completely different chain when one can easily branch off Celestia their own chain. Celestia will also aim to work with rollups either on EVM or Cosmos in the beginning but will expand its compatibility with whatever the demand may be.
Celestia Revenue Stream
Currently, Celestia is in the funding stages and has recently received its first Series A and B funding for $55 million USD. It will also launch its own proof of stake token as a form of governance and to be used for transactions.
At the same time, this will be a fundraising format initially, and then Celestia will primarily make its revenues based on the scalability and those that end up using the platform. The more users that embrace Celestia, the more transactions will occur within Celestia’s network, and those will generate transaction fees as a main source of revenue.
To see where Celestia is headed next, it’s easy to check them out here and follow their current roadmap.
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