- Celestia Foundation received $100M investment from Bain Capital Crypto
- Their modular approach to the very foundation of blockchain promises far-reaching prospects
- Among other things, this should have been one of the reasons for the large investment.
- Especially given the weakened economy and the TIA token decline
Celestia Foundation, which developed the Celestia blockchain, has received a $100M investment from Bain Capital Crypto.
This became unexpected to some as their TIA token has recently experienced a big decline, while others expected something like this due to Celestia’s unique architecture and prospects.
What makes the Celestia blockchain architecture unique is that it separates consensus from the execution layer, fundamentally improving the scalability and efficiency of the network.
This modular approach is important for the entire Web3, as it offers infrastructure improvements at its very core, and simplifies the development of blockchain-based solutions.
What Is the Promise of Celestia’s Approach?
Most blockchain networks are monolithic architectures that are difficult to change and update at a fundamental level.
This is somewhat comparable to how Web2 evolved, also starting with a monolithic architecture but later moving to microservices. This solved several key problems at once, namely to improve efficiency and fault tolerance, as well as to make independent changes without rewriting the whole system.
Celestia, while not the only solution to split computation and storage, focuses on creating an inherently modular blockchain architecture, separating consensus, execution, and data into three layers, each of which can be executed in parallel and changes can be made separately.
This fundamentally empowers developers by allowing them to create custom blockchains that can run in parallel on the same network, undergo changes more easily, reduce overhead, and improve blockchain efficiency and security.
Bain Capital Crypto Investment Meaning
The TIA native token – one of the most talked about airdrops of 2023, having distributed to 580,000 users – experienced a significant decline, following mass liquidation by users. Still, Celestia received its significant $100M investment from Bain Capital Crypto.
This is a large enough sum that it should allow them to actively develop their approach to realizing modular blockchain further, despite market ups and downs. It demonstrates that their approach is inspiring investor optimism and making them see the prospect of payback in the longer term.
But even more important is how telling it is, and it reminds us that while a feature of Web3 solutions is the inherent interplay of economics and technology, their performance is not always equivalent. Many Web3 projects already carry far more value than they cost and the market has yet to appreciate them.
Conclusion
Among the many possible unknown reasons to give a significant investment to Celestia even in the context of not the best market performance, we observe an example where the technological shows have been appreciated among others.
This is why crypto investors and crypto enthusiasts should also pay attention to the technology behind the economics of Web3 projects so that the assessment of their potential can be truly comprehensive and their development forecasts more accurate.
Stay tuned for an exhaustive and grounded analysis of crypto and all of Web3.
