Celestia, a leading network in the blockchain space and one of the pioneering modular blockchains, is making significant strides. Less than a year after its transition to the mainnet following extensive testing, the platform is taking audacious steps to scale its base layer and enhance data availability.
Celestia Plans For 1 GB Blocks For Scaling
In a recent announcement, Celestia’s core developers revealed their preparation for the next phase, which involves the introduction of 1 GB blocks. This major move aims to scale on-chain operations and significantly boost throughput, setting a new benchmark in blockchain scalability.
The rationale behind this decision is clear. Celestia employs a modular architecture that inherently supports scalability. Unlike Ethereum, which faces challenges in scaling on-chain and relies heavily on off-chain solutions like Base and StarkNet, Celestia’s design remains both scalable and flexible, effectively addressing the issues that traditional networks encounter.
Enhancing Developer Flexibility
With the implementation of 1 GB blocks, Celestia envisions a future where developers have the freedom to build without constraints. This flexibility highlights the progress made by modern chains. Unlike other platforms where developers are restricted to specific programming languages such as Solidity or Rust, Celestia allows them to use the languages they are most comfortable with.
Innovative Approaches to Achieve 1 GB Blocks
To realize the goal of 1 GB blocks, Celestia plans to introduce several innovative approaches. These include content-addressable mempools and compact blocks. Additionally, the platform intends to deploy internally sharding nodes and enhance its data availability sampling protocol, ensuring that the network remains efficient and robust.
TIA Down 80%, Will The Supply Uptick Fast-Track The Dump?
Despite these impressive developments, TIA, Celestia’s native currency, has been experiencing a significant downturn. Price data indicates that bears have dominated since prices peaked at $21 in February, leading to a decline of over 80%.
Currently, TIA remains under substantial selling pressure. There is a concern that sellers might negate all progress made since the coin’s listing on Binance in early November.
Upcoming Token Unlock: A Potential Bearish Signal
The immediate concern is the anticipated token unlock scheduled for October 30. Token unlocks are generally viewed as bearish due to the expected increase in supply. On this date, Celestia plans to release 175 million TIA, which accounts for 16.5% of the total supply. Following this, a daily release of 1 million TIA will commence from November 1.
Future Supply Projections and Market Impact
According to projections by Token Unlocks, a monitoring platform, TIA’s supply is expected to increase nearly fourfold by next year. If the current low demand persists, the surge in supply could drive prices below the lows witnessed in November 2023, exacerbating the selling pressure.
In conclusion, while Celestia’s plans to scale with 1 GB blocks represent a significant leap in blockchain technology, the fate of its native currency, TIA, remains uncertain. The upcoming token unlock and subsequent supply increase pose potential challenges that could impact the market dynamics.
