Among the best-performing cryptocurrencies this week is Celestia (TIA) Coin, which reached its all-time high today. We have now seen the announcement of its new integration with Polygon. But what does this move mean?
Celestia and Polygon
As this article was prepared, the BTCC price fell below $41,000 and is lingering around $40,900. TIA Coin, on the other hand, continues the day with an 18% increase, above $12. The price climb from $2 to $12 in a short time was exciting, and those who sold early during the airdrop period definitely regretted it.
Celestia is integrating with Polygon Labs’ network development kit to open up its data availability layer to more layer2 solutions. Thanks to this integration, networks using OKX, Immutable, Astar, IDEX, Palm Network, and the Polygon Code Library (CDK) will be able to benefit from DA capabilities.
Layer2 networks developed on Polygon’s CDK use ZK (zero-knowledge proof) technology. These networks collect data off-chain and send it to the main blockchains in batches. The lack of a specialized execution environment for Ethereum’s DA layer in layer2 solutions brings many challenges. At this point, Celestia’s data solution eliminates the problem.
Celestia’s strategy includes its own data availability solution that can offer storage bandwidth for multiple Layer 2 networks at the same time. This solution facilitates the verification of DA without overloading the network by enabling networks to run lightweight nodes.
Polygon’s co-founder Sandeep Nailwal stated;
“The ready-to-use solution by Celestia, combined with interoperability and unified liquidity provided by Polygon 2.0, will make creating new L2 chains as simple and cost-effective as deploying a smart contract.”
In summary, technical improvements and increasing support may be supportive for the token prices in the upcoming period, with the collaboration between Polygon and Celestia offering more use cases.
What is Celestia?
Unlike classic layer1 solutions such as Ethereum, Solana, and Avalanche, Celestia has set out with the goal of being a modular blockchain. Its architecture is designed to achieve consensus on transactions executed in parallel and off-network between networks. This especially eases the work of layer2 solutions.
In October 2022, Celestia Labs raised $55 million in a financing round led by Bain Capital and Polychain, with a valuation over $1 billion that day.
