Disclaimer: This article is intended to convey more market information and does not constitute any investment advice. The article only represents the author's views and does not represent the official position of MarsBit. Editor: Remember to follow Source: Sanjay Shah Original ti

Disclaimer: This article is intended to convey more market information and does not constitute any investment advice. The article only represents the author's views and does not represent the official position of MarsBit.

Editor: Remember to follow

Source: Sanjay Shah

Original title: Three minutes to understand what innovations Celestia has brought to Crypto

Celestia is known as the most important underlying innovation since Ethereum. To understand where Crypto is heading, you must understand Celestia.

but no one has explained it well yet.

Until now🧵

The first step to understanding Celestia is to understand the application chain theory.

application chain theory believes that eventually we will see that most dApps run on their own blockchains. Why is this happening to

? Because application-specific chains, many benefits that applications on shared chains do not have.

However, there are some problems running the application chain.

For example, the security of standalone application chains on Cosmos is limited.

Alternatively, you can deploy app-specific rollups on Ethereum and gain shared security, but you will lose sovereignty.

Why does ETH rollup lose sovereignty?

They are managed by governance tokens (as opposed to social consensus), and the rich may gain disproportionate voice, and they also lose some of their abilities, such as the ability to fork into multiple chains.

Celestia creates a new model for application-specific rollups,

a system that gains both sovereignty over the Cosmos application chain and Ethereum rollup sharing security.

let us learn more about how Celestia achieves this goal.

I will use ZK rollups as an example to demonstrate how Celestia works, but it also works with optimistic rollups.

First, let’s quickly review how ZK rollups work on Ethereum:

ZK rollups generates L2 blocks and then submits proofs to Ethereum to ensure that the calculations in these blocks are correct. Smart contract verification on

Ethereum is correct.

Celestia has a key insight - L1 does not actually need to verify these proofs to ensure rollup security.

As long as L1 can provide the ordering of transactions and data availability (DA), the rollup node itself can determine which transactions are valid.

Here is an example of how a ZK rollup runs on Celestia:

Assuming Alice has 5 USDC on a ZK rollup, she submitted a transaction and sent 1 USDC to Bob. The

Rollup sorter performs this transaction and publishes the updated status root to Celestia along with a ZK proof.

Celestia does not execute or verify this proof, it simply puts the proof into a block on the Celestia blockchain. The

Rollup node reads data from Celestia and sees a new status root along with published proofs.

They verify the ZK proof themselves to ensure that the new state is correct.

As mentioned earlier, Celestia does not verify these proofs, it just stores them.

However, if Celestia does not verify the proof, can't invalid proof be issued to Celestia?

is actually OK, and invalid proofs can also be published to Celestia!

However, because the rollup nodes read from Celestia are verifying the proof, they will know that an invalid proof has been issued and can simply ignore it.

In this case, they do not update the status root, but continue to use the previous status.

In addition to the state root and zk proof, rollups on Ethereum and Celestia also publish separate tx to L1 for data availability.

If you are not familiar with data availability (DA), and why it is needed to implement rollup security, here is a simple explanation:

https://twitter.com/sanjaypshah/status/1580221120405327872

Summary:

Ethereum and ZK rollups on Ethereum and Celestia publish state roots, ZK proofs, and personal transactions (for data availability) to L1.

In the case of Ethereum, L1 validates zk proof.In the case of Celestia, L1 leaves proof verification to the node of the rollup.

Celestia not only does not conduct proof verification, but also does not perform any form of execution.

dApp cannot be deployed directly on Celestia because it does not have smart contract capabilities, which makes it the only L1 that does not execute any transactions!

Celestia just provides a place for rollups to publish data. With this, rollups can inherit the complete security of Celestia!

is simple, but very powerful. The Rollups established by

on Celestia are called sovereign Rollups, why are they called sovereign?

Unlike Ethereum Rollup, there are no smart contracts on Celestia L1 to determine the normative chain, which allows them to upgrade through social consensus rather than governance tokens.

In addition, sovereign Rollup can fork into multiple chains, which is something Rollup on Ethereum cannot do. The forked chain inherits the same basic layer security as the original chain.

Of course, not all Celestia's design brings benefits.

has different trade-offs to choose to be sovereign Rollup on Celestia and to become a regular Rollup on Ethereum. The most obvious trade-off in

is the cross-chain bridge.

Since Ethereum verifies the status of each Rollup, it can be used to easily connect assets through a cross-chain bridge between Rollups.

Sovereign Rollup can also form a cross-chain bridge with minimal trust, but it is more complex because Celestia cannot be used as an intermediary. The post attached to

provides a more comprehensive overview of the trade-off between Ethereum Rollup and sovereign Rollup on Celestia.

https://twitter.com/sanjaypshah/status/1575188529361014784

is it!

You should now have a rough understanding of the following aspects: What is

  • Celestia?
  • Why it is different from all other L1s.
  • How it implements a completely different type of Rollup (Sovereign Rollup).

PS - I've missed some behind-the-scenes details about how Celestia works, such as "Data Availability Sampling" (DAS), which allows Celestia to scale while keeping decentralized .

If you want to take your understanding of Celestia to the next level, it is worth delving into it.

Editor in charge: Kate