Celestia is a modular blockchain network, proposing a novel approach to blockchain architecture. Celestia decouples consensus from execution, allowing for enhanced scalability and flexibility. As a result, Celestia may function as a foundational layer for various blockchain applications, particularly focusing on improving scalability without compromising security or decentralization.

A key innovation in Celestia is the introduction of Data Availability Sampling (DAS). DAS is a mechanism that allows for the verification of all data that is available on a blockchain, enhancing the security and efficiency of the network, especially for users running light nodes. This approach is particularly beneficial for blockchains as they scale, as it allows for the verification of large blocks of data without the need for extensive computational resources.

Celestia also introduces the concept of sovereign rollups. These rollups, unlike traditional ones, offer the convenience of layer 2 scalability solutions while maintaining the sovereignty akin to layer 1 blockchains. This feature enables developers to launch independent blockchains that inherit security from Celestia’s validator set, thus encouraging innovation and experimentation in the blockchain space.

The TIA token is the native digital currency of the Celestia ecosystem. Its primary functions include transaction fees and network participation rewards. TIA tokens were initially distributed via a fair-launch airdrop.

Celestia is led by CEO Mustafa Al-Bassam, a former Ph.D. student at University College London, who published a significant paper on blockchain architecture, entitled LazyLedger. 

Risks of TIA

Like an investment in other crypto assets, there are some general risks to investing in TIA. These include:  (i) volatility risk and liquidity risk, (ii) short history risk, (iii) demand risk, (iv) forking risk, (v) code defects, (vi) regulatory risk, (vii) electronic trading risk, and (viii) cyber security risk. For additional information of these and other general risks associated with crypto assets and Uphold’s platform, please refer to the Risks Specific to Holding Digital Assets statement.

In addition to these general risks, an investment in TIA is subject to the following specific risks:

The protocol layer blockchain space faces significant competition. Any potential success will depend on the extent of Celestia’s adoption by consumers, businesses, developers, and other industry stakeholders. 

Celestia relies on a global network of TIA holders, contributors, and validators to develop and operate the network and its associated ecosystem. 

We emphasize that this Crypto Asset Statement is not an exhaustive description or summary of all risks associated with TIA. Investors should conduct their own research and perform their own assessment before trading any crypto asset to determine the appropriate level of risk for their personal circumstances.

The TIA community and Celestia’s founding team are not under any legal or regulatory obligation to disclose material information to the public regarding its activities. Holders of TIA have no recourse to the TIA community, Celestia founding team, or Uphold if TIA declines in value for any reason.

Changes to applicable law may adversely affect the use, transfer, exchange, or value of any of your crypto assets, and such changes may be sudden and without notice.

Uphold’s Evaluation Process

Prior to listing TIA on the Uphold Platform, Uphold performed due diligence on TIA and determined that TIA is unlikely to be a security or derivative under relevant securities legislation. Uphold’s analysis including reviewing publicly available information on the following: 

The creation, governance, usage, and design of TIA, including ensuring the source code is open-source, audited and peer reviewed, security, and roadmap for growth in the developer community. 

The supply, demand, maturity, utility, and liquidity of TIA.

Any marketing materials put forward by the TIA social team including on, Twitter, Medium blog, LinkedIn posts, Discord and Telegram channels.

Material technical risks associated with TIA, including any code defects, security breaches and other threats concerning TIA and its supporting blockchain (such as the susceptibility to hacking and impact of forking), or the practices and protocols that apply to them.

Legal and regulatory risks associated with TIA, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of TIA.