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Modular Blockchain: Deep Dive
Monolithic blockchains, while performing all 3 necessary functions (consensus, execution, data availability), face limitations dictated by the scalability trilemma. This problem was solved for a long time with the help of sharding and L2 solutions, which led to the emergence of the concept of dividing the blockchain into separate components. One of the steps in the development of this idea is modular blockchains.
TL;DR
- Modular blockchain is based on the modular design principle, which divides the system into smaller parts.
- A modular blockchain divides the basic components into independent parts and maximizes them through additional solutions, while a monolithic blockchain takes over the execution of all functions at once.
- Advantages of modular blockchains: scalability, flexibility, sovereignty, speed.
- We can observe the practical implementation of this architecture in such projects as Celestia, Fuel, and Polygon Avail.
What is a modular blockchain
A blockchain that specializes in only a few blockchain functions, and not all, is called modular. It got this name because of its principle of operation: dividing the system into smaller parts that can be independently created and integrated with each other as if they were Lego parts.
The main idea is to create a more efficient system by focusing on segments, creating conditions for increasing the throughput of the blockchain. This is provided by increasing the block space and narrowing the set of validators.
The developers, substantiating their idea of the transition of blockchains to a modular architecture, highlight the following advantages of a modular blockchain in comparison with a monolithic blockchain:
- scalability: the type of blockchains in question is more scalable due to the sharing of resources, which means the specialization of each node for a specific function;
- flexibility: developers get the opportunity to experiment with any runtime environment;
- sovereignty: L1's own runtime environment that has a personal social consensus;
- speed: new blockchains can be launched efficiently in much less time and money because they can use existing modular blockchains to “outsource” their functions.
Modular blockchains are a new technology that changes the way blockchains are built and allows them to interact for greater efficiency. At Pontem, we also understand how important it is to move towards the scalability of all blockchain technology. Therefore, when creating decentralized applications on Aptos (L1 blockchain), we take care of low fees and fast transfer of assets as key features to make the experience of interacting with the world of cryptocurrencies as friendly as possible. Find out more about our solutions on the website.
What technologies are used in modular architecture
To understand the technology of designing modular blockchains, it is necessary to start by understanding the operation of any blockchain. Decentralization, scalability, and security are the main attributes that can be embodied in the blockchain. Monolithic blockchains try to achieve all three of these goals on the main chain. As a result, the optimization of one of the blockchain components limits its other functions.
Modular blockchain divides the basic components into independent parts and maximizes them. Learn more about components.
Consensus - is responsible for ensuring security by determining the truth of the data that is stored in the blockchain. This category provides proof of work and proof of stake: how a block is added to the chain and how participants agree that the block is valid.
Execution - the calculation that is necessary for the process of transitioning the state of the blockchain to the next block. That is: block A + transactions and confirmation of their truth = block A + 1
Data availability - access to data on each node of the blockchain for everyone who uses this blockchain.
Due to its modular architecture, the blockchain is able to distribute functionality into separate layers that work together. In this case, scalability is improved while maintaining decentralization and security.
One of the ways to optimize the functionality of the blockchain is modularization using the Rollup technology. Rollups are able to complete transactions much faster than the main chain, because it creates a separate environment from L1 for this, freeing them from responsibility for issues of consensus and data availability.
An important fact is that the user always has the opportunity to withdraw all his funds from the rollup. In the event of a breakdown or attack, using the escape module, you transfer funds from the rollup to L1.
Rollups do not need expensive consensus mechanisms to ensure security, because L1 pays security fees, so rollups do not require maintenance costs.
Modular security issues can be addressed with a PoS validator. The currency embedded in the PoS network, created by the consensus mechanism, is responsible for ensuring security. This allows each computer on the network to be responsible for network security.
A key feature of modular design is that the optimization of each module allows you to enhance the optimization of other modules. We can think of this as some basic relationships:
- more decentralization - more scale. Solving the issue of modularity with PoS allows you to expand the set of validators, which at the same time can provide secure support for more data.
- more scale - more speed of execution. Additional shards like rolls have a big impact on the ability to complete tasks because they compress a huge amount of data before adding it to the main shard.
Examples of modular solutions
Celestia is a blockchain that achieves scalability, flexibility, and interoperability by focusing its capabilities only on sequencing transactions and ensuring data availability. That is the blockchain only orders and publishes transactions without executing them.
The company promotes the values of modular architecture by allowing developers to define their own virtual runtime environments and applications to define their own sovereign space.
Fuel positions itself as the fastest modular execution level with maximum security and flexible throughput. Blockchain is going to achieve this by relying on three central technological principles: the parallel execution of transactions, its own domain-specific language Sway, and the Fuel Virtual Machine.
Fuel uses several different configurations at work: Fuel as a Rollup or Layer-2, as Layer-1, as State Channel, and as Sidechain.
Polygon Avail is a blockchain focused on data availability and providing true evidence without loading huge amounts of information into a block. It decouples transactions from consensus, allowing it to be solely responsible for sequencing transactions and making data available.
The project identifies the following goals for itself: ensuring the security of the validator through autonomous chains with arbitrary execution environments and L2 solution as the level of data available outside the chain.
About Pontem
Pontem in the crypto space is following the path of global financial inclusion through the use of blockchain technology. We strive to create decentralized applications and all the necessary infrastructure for the implementation of the l1 blockchain, for this we cooperate with Aptos.
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