Download App
iOS & Android

A&T Capital: Why we invested in Celestia?

Validated Venture

01. Financing Information

Celestia Foundation announced on October 19 that it had raised a $55 million in a funding round led by Bain Capital Crypto and Polychain Capital, with participation from A&T Capital, and co-investors from Placeholder, Galaxy, Delphi Digital, Blockchain Capital, NFX, Protocol Labs, Figment, Maven 11, Spartan Group, FTX Ventures, IOSG Ventures, Smrti Lab, Jump Crypto, Balaji Srinivasan, Eric Wall, Jutta Steiner, etc.

It is reported that Celestia is building a modular blockchain architecture with the hope of solving the challenges inherent when deploying and scaling blockchains. Modular blockchain projects such as Eclipse, Constellation and dYmension already use Celestia for their data availability layer. In May this year, Celestia unveiled its testnet Mamaki to introduce a new data availability API, with an upgrade scheduled for late October 2022.

02. Why should we invest in Celestia?

1 ►The logic of Investment

1. The modular concept has significant value, and it may lead the blockchain infrastructure into a new era.

Modular concept: Modular design on blockchain is similar to the code modularization of software engineering seen in the past. The consensus of Celestia is solely responsible for ordering transactions and guaranteeing their data availability, allowing different chains to hand over their data layers to Celestia for processing. Thus, its performance such as chain throughput is improved; and at the same time, each chain has gained a lot of autonomy at the execution layer and chain state consensus layer. For example, chain nodes can freely choose to parse the underlying data in different ways, including upgrading their client without forking. Most importantly, the community of the application is unprecedentedly able to have an absolute say in the chain, which makes Celestia the best choice for app chains.

2. Industry KOLs and top technical team

Top strength: Both Mustafa and John are KOLs in the industry and have a huge influence on the community; at the same time, after nearly 3 years of precipitation, Celestia’s code is widely recognized by the developer community, and there are more than 500 stars and 300 forks on GitHub, which reveals they have amazing accumulation of technology.

2. ► Industry Status

1. Ethereum leads the industry into the modular era

Since Vitalik have pushed Ethereum into a route with Rollup as the core, Ethereum has entered the era of modularization: Rollup greatly improves the output efficiency of the Ethereum network (~3000TPS) by separating the execution layer and combining with data packaging;

As shown from the Ethereum’s latest mid-to-long-term plan–Danksharding, Ethereum will move forward along the modularity, separating the data availability layer into each shard for execution, combined with PBS, to further improve the throughput of the entire Ethereum network (3000*3000≈100,000 tps);

Celestia has chosen a modular approach which is completely different from Ethereum and allow developers to have higher customization capabilities.

3. ►How Celestia Works

Just as the previous name LazyLedger shows, Celestia promotes a pluggable consensus and data availability layer, allowing anyone to quickly deploy a decentralized blockchain without the cost of an additional consensus layer. In other words, Celestia is a public chain that stores transaction records and provides data availability.

Celestia adopts a modular architecture, deconstructing the blockchain into four layers: data, transaction ordering consensus, network state consensus, and execution (most blockchains such as the current Ethereum mainnet and Solana will still run these four functions as one layer), while Celestia is solely responsible for the two layers of data and transaction ordering consensus, and the other two layers of network status consensus and execution can be freely played.

Benefiting from the fact that nodes only need to process the consensus on the storage of transaction data and transaction order (no need to perform calculations and state consensus), combined with the Data Available Sampling scheme, Celestia nodes can run more efficiently, that means the efficiency of the Celestia network is vastly improved.

Since there is only one solution to the final correct state of the blockchain network as long as the entire network consensus is carried out on transaction data and transaction ordering, using Celestia as the underlying blockchain upper-layer network will be able to share the security brought by Celestia.

Flexibility: thanks to the free play of the upper two-layer structure, the nodes of the chain based on Celestia can freely choose to parse the underlying data in different ways. The significant benefits are as follows: they can upgrade their clients to meet different ecological needs without forking.

Sovereign network: The community can have an absolute say on the chain. In contrast, the Rollup under the Ethereum framework is subject to the consensus of the Ethereum L1 community.


All Comments

Recommended for you

  • Wormhole Raises $225M in Biggest Web3 Funding Round of the Year

    Wormhole, a messaging protocol startup, has raised $225 million in funding at a $2.5 billion valuation, making it the largest round in the Web3 space this year. The funding round included investors such as Coinbase Ventures, Jump Trading, Multicoin Capital, and Arrington XRP Capital, with their stakes consisting of token warrants for a yet-to-be-unveiled cryptocurrency. The Wormhole team has also announced the launch of Wormhole Labs, an independent company focused on building products and tools to help grow cross-chain development. Despite a slow year for funding in the Web3 sector, this round is exceedingly large and demonstrates continued interest in blockchain technology.

  • Wormhole completes US$225 million in financing at US$2.5 billion valuation

    On November 29th, according to Fortune, Wormhole completed a $225 million financing with a valuation of $2.5 billion and completed its split with Jump Crypto.

  • DeFi revenue platform Coinchange secures US$10 million in financing

    DeFi yield platform Coinchange raised $10 million in financing. Participants in this round of financing include G1.VC, Spirit Blockchain, Good News Ventures, K2.CA, Atoia Ventures, and Mintfox.

  • Chen Maobo: Virtual assets require new regulatory systems to deal with them

    Hong Kong Financial Secretary Paul Chan Mo-po pointed out at a high-level meeting of the Hong Kong Monetary Authority and the Bank for International Settlements (BIS) that the global financial industry is innovating rapidly, and there have been major breakthroughs in the development of artificial intelligence. This will bring new work models to society and the financial industry, and virtual assets are also emerging. All technological applications and investments require new regulatory systems to cope with them. Local governments and central banks need to cooperate and share information, and coordinate with each other when launching relevant policies, in order to further promote financial innovation.

  • Charlie Munger, Warren Buffett's longtime business partner and Berkshire Hathaway vice chairman, dies at 97

    Charles Munger, the vice chairman of Berkshire Hathaway and longtime partner of Warren Buffett, has died at the age of 97. Munger was known for his blunt investing style and his ability to outperform the market. He was also a philanthropist, donating over $100 million to build housing at the University of Michigan. Munger lived modestly and was often compared to Buffett for his aversion to following trends.

  • Web3 Commerce App Setter Raises $5M Seed Round Led by A16z

    Web3 consumer-facing app Setter has raised $5 million in a seed round led by Andreessen Horowitz (A16z) and featuring participation from Marcy Ventures Partners, Dreamers VC, Thirty-Five Ventures, and Serena Williams. The company is building a "smart contract wallet" that allows users to easily switch from traditional Web2 payments to crypto using their credit cards. Setter aims to make it simpler for non-crypto native users to join Web3 and wants to help brands explore Web3-powered commerce by enabling them to offer payment options that allow users to easily switch from fiat to crypto. The company's initial plans are to develop partnerships with leading streetwear and sneaker brands, with an ultimate goal of expanding its ecosystem across fashion, luxury items, and consumer collectibles.

  • Decentralized Bitcoin mining project Mummolin raises $6.2 million in seed funding, led by Jack Dorsey

    Mummolin, Inc. announced that it has raised $6.2 million in seed funding, with strategic partners such as Jack Dorsey, Accomplice, Barefoot Bitcoin Fund, MoonKite, NewLayer Capital, and Bitcoin Opportunity Fund leading the investment. The seed funding will support the launch of the decentralized Bitcoin mining project OCEAN.

  • Web3 consumer application Setter completes $5 million in seed round financing, led by a16z

    On November 28th, according to CoinDesk, Web3 consumer application Setter completed a $5 million seed round of financing, led by a16z, with participation from Marcy Ventures Partners, Superlayer, Thirty Five Ventures, and retired tennis star Serena Williams. Setter plans to help brands innovate and promote exclusive products, and provide customers with limited edition products. Setter aims to solve the complexity and unfriendliness of current wallet technology, providing a more seamless Web3 experience for more users.

  • Web3 entertainment company AnotherBall completes US$12.7 million in seed round financing, led by Hashed and ANRI

    On November 28th, Web3 entertainment company AnotherBall announced the completion of a $12.7 million seed round financing, led by ANRI and Hashed, with participation from Global Brain, Globis Capital Partners, Sfermion, HashKey Capital, Everyrealm, Ethereal Ventures, Emoote, and Crunchyroll founder Kun Gao.
    It is reported that AnotherBall has been actively involved in technology projects such as "Ailis" and "SAI by IZUMO". AnotherBall is currently developing a platform that allows creators from around the world to connect with fans and earn money through their content. The beta version of the platform is planned to be released in the first quarter (January to March) of 2024, with a full public release expected later this year. AnotherBall is a venture capital company established in May 2022, with a focus on the Web3 virtual UP main project IZUMO, aimed at creating a place for broadcasters, illustrators, music and video producers who love anime, comics and game culture to continuously create income based on their hobbies.
    As previously reported by BlockBeats, on May 17th, AnotherBall completed a $2.2 million angel round financing, with participation from Hiroaki Kitano, Chief Technology Officer of Sony Group, Jaynti Kanani, founder of Polygon, Suji Yan, Chief Technology Officer of Mask Network, Kevin Lin, co-founder of Twitch, and Rehito Hatoyama, advisor to Azuki development company Chiru Labs.

  • Li Jiachao calls on citizens to strengthen investor education when trading on licensed platforms

    Hong Kong Chief Executive Carrie Lam attended a meeting with the media before the meeting today and expressed concern about the case. The Securities and Futures Commission and the police will explain the incident this afternoon. When asked whether the current relevant regulations are insufficient, Carrie Lam responded that the government needs an effective regulatory system to protect investors. She believes that this incident shows that citizens must invest in regulated and licensed platforms and emphasizes that the current licensing system can ensure that platforms provide sufficient protection for investors, including distinguishing between funds held by platforms for investors and operating funds of the company, and ensuring that the company's debt capacity is regulated and restricted.