For a while now, we have had to work with monolithic chains like Ethereum to carry out most of the tasks required of a blockchain. Celestia came in as the first data availability blockchain network and as a modular blockchain network. However, how is it different or similar to Ethereum?
This article focuses on how the two chains compare.
What is Celestia?
Celestia is a blockchain network that adopts a modular approach, with its main focus being addressing scalability issues common in traditional blockchain. It sets itself apart through the separation of the execution from consensus and implementing data availability sampling (DAS) as the main feature.
Celestia also scales with the number of users, which makes it easy for anyone to launch their own blockchain.
Therefore, in simple terms, Celestia operates as a modular blockchain network that offers the opportunity for developers to easily build and maintain blockchains. Other blockchains can be able to use its data availability and consensus layer.
Celestia’s Mainnet went live on October 31, 2023, and has been dubbed as the start of the ‘modular era.’
Blockchain modularity is a blockchain design concept that separates the essential functions any blockchain performs. They are mainly tuned to perform a specific function. In this way, they also aim at providing optimized infrastructure for blockchains as a means to achieve mass scale.
Celestia the first data availability network. This means that the network allows any network participant to easily access and download transaction data at any time to verify a block. This comes in as a security measure to allow anyone to inspect the blockchain ledger and verify the transactions.
To solve the scaling issue that comes with downloading complete transaction data, Celestia utilizes data availability sampling (DAS). DAS helps any chain scale without undermining its security.
About Ethereum
Ethereum, without sharding and rollups, exists as a monolithic chain. This can be attributed to its slow transaction speeds and a greater emphasis on decentralization and security. This is mainly Ethereum 1.0, handling functions such as data availability, execution, consensus, and settlement.
Ethereum is in most cases identified as the next generation of Web3. This comes from the perception that it offers users with more control, anonymity, and freedom from censorship.
The primary goal in creating Ethereum was to address interoperability and scalability issues that were initially taken as a Bitcoin problem. However, Ethereum is yet to solve the blockchain trilemma, with scalability being the main issue.
One of the major and prominent specs that Ethereum has is supporting smart contracts, which are self-executing contracts. The terms of the agreement in smart contracts are directly written into code. Smart contracts automate processes that would have needed intermediaries in the first place. This in turn offers efficiency and trust in transactions.
Celestia vs Ethereum: Which is Better?
Polygon and Celestia have been identified as two important players in Ethereum’s rollup-centric roadmap. Celestia does not only offer an ecosystem where developers easily create new blockchains. It also helps layer two rollups scale by providing them with off-chain data storage, consensus, as well as verification.
Celestia and Ethereum compare in different cases including;
Scalability
The main idea behind the functioning of modular blockchains is that they separate their functioning across multiple chains. This concept usually brings about extra scalability. A modular layer 1 network like Celestia mainly specializes in data availability.
Ethereum is yet to achieve scalability, as it is faced with high gas fees and slow transactions. There are ongoing solutions created primarily to address this issue.
Celestia solves scalability issues plaguing many monolithic chains through the decoupling execution from consensus. It also brings into play such concepts as trust-minimized bridges, sovereign chains, and efficient resource utilization.
Security
Celestia operates as a permissionless network, employing a proof-of-stake mechanism to secure its consensus. All chains on Celestia usually receive even security from its validator set. Therefore, there is no security fragmentation. Celestia also operates on shared security, which helps with building secure bridges.
It is not so different of an issue with Ethereum, being the most secure and decentralized smart contract platform we have right now. However, we have already experienced some of the major breaches of this protocol.
Sovereignty
When you build an app on the Ethereum blockchain, it is mainly bound by predetermined rules. These rules might be around social consensus or technical rules.
However, on a modular blockchain like Celestia, you have control over the rules of any application due to sovereignty. Developers can make changes to the tech stack without permission from outside applications.
Token utility
TIA is the native token of the Celestia blockchain and is an essential factor in how developers will build on Celestia and use it for data availability. The token will be used for bootstrapping new rollups, publishing data on Celestia, and staking.
On the other hand, ETH is mainly traded as a digital currency and used on the network to pay for transaction fees.
In all factors brought into consideration, both Celestia and Ethereum have considerable advantages for other networks, acting as a stepping-stone for developers.
The main factor that Celestia comes on top of Ethereum is its scalability issues, as it is cheaper compared to Ethereum, and is fast in its transactions.
Final Thoughts
Celestia has emerged as a modular blockchain solution, addressing the issues we face like scalability. To solve these issues, Celestia employs innovative features like data availability sampling.
In all matters, its operational efficiency and scalability make it a strong contender, challenging Ethereum’s dominance in the blockchain realm.