Modular blockchain

Modular blockchains represent a new approach to building blockchain networks, offering scalability, flexibility, and efficiency by decoupling essential tasks. In a traditional monolithic blockchain like Ethereum or Solana, the consensus (securing the network), data availability (ensuring transaction data is accessible), and execution (processing transactions and smart contracts) are tightly integrated. While this approach provides simplicity, it can lead to inefficiencies and scalability bottlenecks as the network grows.

In a modular blockchain, each layer focuses on a specific role:

• Consensus Layer: Ensures network security and agreement on the state of the blockchain.
• Data Availability Layer: Provides storage and accessibility of transaction data without processing or executing transactions.
• Execution Layer: Handles transaction processing, smart contract execution, and application logic.

By separating these functions, modular blockchains allow developers to create specialized layers optimized for their respective tasks. For instance, a highly scalable execution layer can rely on a robust data availability layer like Celestia, enabling high throughput without sacrificing security or decentralization. This design enables interoperability between layers and creates a more adaptable blockchain ecosystem.

Modular blockchains are particularly suited for rollups, where transaction execution occurs on a separate layer while leveraging a shared consensus and data availability layer for security. This allows for significantly higher scalability and reduced costs compared to monolithic designs.

Key Features

• Separation of Concerns: Divides consensus, data availability, and execution into independent layers.
• Scalability: Achieves higher throughput by allowing each layer to optimize its functionality.
• Interoperability: Facilitates seamless communication between modular layers and networks.
• Customizability: Enables developers to build tailored solutions for specific use cases without reinventing the entire stack.
• Cost Efficiency: Reduces computational and storage requirements for individual layers, making operations more economical.