Celestia Launches Private Blockspace Using Verifiable Encryption for On-Chain Privacy

• Celestia announced Private Blockspace, publishing verifiably encrypted state to the Celestia network for public data availability checks.
• Verifiable encryption in a zkVM proves properties like hashes/Merkle roots without decrypting the encrypted state.

Celestia has announced Private Blockspace, a framework for on-chain markets that require confidentiality alongside public verification. The initiative targets perpetual futures exchanges, order books, and institutional settlement rails, where positions, balances, liquidations, and execution logic are sensitive. 

Celestia said the design keeps these details private while allowing third parties to confirm that data is available and that protocol commitments are posted onchain. The company described a common tradeoff for private markets where publishing full state exposes strategies, while keeping data off-chain requires reliance on operator trust.

Moreover, off-chain models can limit independent auditing and may raise withdrawal risk if an operator stops processing requests. Private Blockspace aims to publish an encrypted state to Celestia so that availability can be verified publicly without revealing the underlying contents. Private Blockspace relies on a Private Blockspace Proxy that posts verifiably encrypted state to Celestia. The company said Verifiable Encryption allows selected properties of encrypted data to be proven without decryption. 

In the outlined approach, encryption runs inside a zkVM that outputs a proof of the algorithm and parameters used, along with protocol-defined assertions such as matching a referenced hash or Merkle root. Anyone can check the ciphertext and proofs for availability on Celestia. Earlier on, CNF reported that the TIA token was showing a prolonged bullish transition phase, with some projecting gains of more than 1,000%.

Verifiably Encrypted State Published to Celestia

Celestia connected the release to its data availability capacity. It cited the current throughput of about 5.3 MB per second and pointed to Fibre Blockspace, a design intended to reach up to 1 terabit per second under target conditions. The company said the larger headroom is meant to support frequent encrypted state updates for latency-sensitive markets, while retaining fault resistance from the underlying network. 

The network said applications can keep execution logic private while still committing to state transitions that auditors can verify against published proofs. The announcement noted that key management determines who can decrypt the state and presented several options for developers. These include conditional selective disclosure to designated parties and threshold encryption for multi-party reconstruction. 

It also described an account-centric model where users provide encryption keys for their own account data, allowing them to decrypt balances and positions while leaving other accounts confidential. The proposal also allows a user to progress certain state updates by proving a correct state transition for their data.

Celestia identified Hibachi as an early deployment using Private Blockspace for a high-speed perpetual exchange, publishing encrypted exchange state to Celestia with public checks for availability and correctness. The company also referenced data marketplaces that publish verifiably encrypted datasets so buyers can verify availability before payment. 

At press time, the TIA token was trading at $0.4585, down 1% over the past 24 hours, with a market cap of $399.4 million. TIA trading volume surged more than 30% over the last 24 hours to $39.8 million.