Celestia Fast to Outpace Ethereum in Data Storage – Research
Celestia, a layer-1 data access network is poised to take the number one spot in onchain data storage from current Ethereum.
According to the data, Celestia has been gaining market share from Ethereum since May, starting at around 20% and rising to around 40% as of July 31st.
In the year Launched in 2023, Celestia describes itself as “a modular data delivery network that makes it easy for anyone to securely open their own blockchain.” Its focus on data availability puts it in competition with Ethereum, the leading settlement layer of Web3.
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Ethereum's Denkun update in March introduced “blobs,” temporary off-chain data stores designed to reduce costs for layer-2 sharding networks by bypassing the need to post large amounts of data on-chain.
Bullets are stored on Beacon Chain nodes for about two weeks, giving validators time to verify the authenticity of the data and post verifications to the network.
Despite Denkun's cost-effectiveness — which Ethereum creator Vitalik Buterin expects to be more than 98% — storing data on Celestia is often cheaper, according to a report by staking platform Fiment.
According to the report, “Transaction fees differ on both networks, with Ethereum fees often higher due to the complexity of smart contract interactions.” The report continues: “Celestia offers lower overall costs due to its efficient modular architecture designed to support high costs and low congestion.”
Celestia is not Ethereum's only competitor when it comes to data availability. Reconfiguration Protocol EigenLayer launched its own data delivery service EigenDA in April. Avail, a data availability protocol from Polygon, was launched in July.
According to Dan Smith, manager of data analysis at Blockworks, even if rivals displace the lead in data storage, Ethereum will remain the undisputed settlement layer of Web3 for the foreseeable future.
“Ethereum will continue to be decentralized, stable, and TVL dominant, requiring a settlement layer,” Smith wrote in a post on X.
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