💡 What is this?

Blockchain Modularity is an architectural approach 🧩, where blockchain functions are divided into separate, specialized levels or modules.

Unlike "monolithic" blockchains (such as early Ethereum or Bitcoin), which try to perform all tasks (execution, computation, consensus, and data availability) on their own, a modular blockchain delegates these functions to various task-optimized chains.

Key Functions and Their Distribution

A monolithic blockchain performs all four functions simultaneously. A modular blockchain separates them:

  1. Execution: Processing transactions and updating the state of the network. This task is usually performed by Rollups (L2 solutions, for example, Arbitrum, Optimism).

  2. Consensus: Agreement among validators on the sequence of transactions.

  3. Data Availability (DA): Ensuring that transaction data is indeed published and available for verification. This is handled by new layers (for example, Celestia).

  4. Settlement: Finalization and confirmation of transactions. Usually, this remains with the base layer (Layer 1, for example, Ethereum).

Why is this a key trend?

Modularity addresses the main problem of Web3: the "blockchain trilemma" (a compromise between security, decentralization, and scalability).

  • Scalability: By processing transactions on specialized execution layers (L2 Rollups), the main blockchain (L1) is not overloaded. This significantly increases speed and reduces fees.

  • Flexibility: Developers can create their own Rollups (often called "sovereign Rollups"), choosing the best consensus or data availability module. This opens up space for innovation.

  • Security: Modular networks that use Ethereum for Settlement and Consensus inherit its security, even if they are separate chains.

Comparison

Modularity is the future of infrastructure, allowing the creation of specialized, ultra-fast, and cost-effective blockchains for specific tasks while remaining secure.

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