Blockchain developers have been struggling with the optimization problem for a long time. Many architectures have been tested, the goal of which was to place all users on a single circuit, or a tightly coupled group of circuits, forming a single network. This approach proved to be limited and difficult when scaling the system to a large number of users.
The solution to this problem has moved forward with the help of sharding and Level 2 solutions. The concept of dividing the blockchain into separate components gave rise to the idea that one blockchain does not have to do everything on its own. In this article we will discuss modular blockchains. To understand the uniqueness of the new technology, it is important to recall the 3 main features of any blockchain:
- Consensus.
- Execution.
- Data availability.
Traditional monolithic blockchain performs all functions at the same time. In these networks, the four basic operations – like performing transactions, calculating them, arranging their order, and making their data available – are performed by the same platform. This kind of multitasking limits their work.
Modular Blockchain
A blockchain is called modular if it specializes in only a few functions. Such blockchains are based on the principle of modular design, which is the concept of dividing something whole into smaller parts. The pieces can then be independently built and integrated with each other – just like LEGO bricks.
Separating the functions of a modular blockchain into different layers allows to create a more optimal system that is scalable and secure. The first project in this field was . Developers decided to focus on consensus and data availability. Transactions are executed by rollups integrated in Celestia. Rollups allow you to perform transactions on this platform and only afterward the data is sent to the Ethereum network
Benefits of modular blockchains
- Scalability
Thanks to the division into several levels, scaling can be done without compromising security and decentralization.
- New blockchains
Since modular blockchains are not required to perform all functions, new blockchains can simply use existing modular blockchains to “outsource” their functions. This allows them to be launched efficiently, reducing deployment time and minimizing costs.
- Sovereignty
New modular blockchains may have sovereignty, similar to L1. This will allow you to react to hacks and implement updates without the permission of other layers.
Modular blockchain projects
For now there are two main projects that are developing modular blockchains.
1. Polygon Avail
Polygon developers created a project called Avail. It is a scaling system that can help blockchain apps use the Polygon main chain and other blockchains. This solution only focuses on one part of application requests at a time in order to speed up transactions. Tesnet of the project is live now.
2. Celestia
Celestia is a blockchain whose sole purpose is to order transactions and make data available. That’s why Celestia could achieve great results in scalability, flexibility, and compatibility.
Mustafa Al-Bassam (PhD in blockchain scaling, University College London), Ismail Khoffi (formerly an engineer at Tendermint) and John Adler (creator of optimistic rollup) are the developers of the first modular blockchain. Project’s tesnet was released in 2022.
Blockchain technology is developing pretty fast. New types and offers appear in the field. One of these innovations is called modular blockchain. It is a new technology that changes the way blockchains are built. This new concept allows projects to work with greater efficiency. The technology solves the problem of scalability and opens up many new opportunities for developers. However, modular blockchain has just been developed, and now this technology is going through testnets to be sure that everything operates perfectly.
Have you heard about modular blockchain before? Let us know in the comments!
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