2024-03-26
The price of NEAR went from $1.0056 on
Oct 21, 2023 to $8.825 on Mar 15, 2024. NEAR price increased 8 times during
this period.
One reason why NEAR price went from $1
to $8 is because of trend in Data Availability.
NEAR Protocol is a blockchain network
known for its sharding technology that help create scalability. NEAR is also a
data availability provider.
Celestia gave birth to the rise of
modular blockchain and create trend in data availability.
Modular blockchain revolutionized
blockchain technology because it creates ability to separate execution layer,
consensus layer, data availability layer, and settlement layer of the
blockchain.
This enables transactions to process
data availability on Celestia or NEAR and settle the transactions on Ethereum,
help reducing the cost of transactions.
Celestia is the first data availability
blockchain and it launched mainnet on Oct 31, 2023. While, NEAR began to
release its data availability solution called NEAR DA on November 2023.
Both Celestia and NEAR Protocol are
data availability providers. Since the advent of Celestia, NEAR tokens started
to make good return. From the market cap of $1 billion to $8 billion.
Data availability means application or
validators post data on blocks. It is the data that available for downloading
to verify the transactions for example Alice transferred 5 ETH to Bob.
Data availability providers like
Celestia and NEAR Protocol help reducing data availability costs because
posting data on Celestia or NEAR is cheaper than posting it directly on
Ethereum.
Vitalik Buturin was explaining about data availability.
