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Modular Design Overview

Eshita NandiniJun 26, 2022 ⋅ 8 min read

Key Insights

  • Modularity will be key to addressing the blockchain trilemma, bringing about a multichain future that is secure, scalable, and decentralized.
  • Ethereum in its current form is semi-modular as we approach The Merge as a result of L2 usage.

Monolithic blockchains, when decomposed, perform three main functions: execution, consensus, and data availability. On the other hand, modular blockchains are built to house a single component of a monolithic blockchain. For example, a Proof-of-Stake (PoS) consensus chain would have its own unique set of validators, not shared by another component.

Monolithic chains face the blockchain trilemma where it can sufficiently optimize for 2 out 3 when it comes to security, scalability, and decentralization. As adoption increases, having one network manage all functions severely limits growth in one of the areas, which is scalability in Ethereum’s case. In this sense, specialization begets scalability.

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Eshita Nandini

41 Reportseshita

Eshita is a Research Analyst at Messari focused on Web3 topics. Previously, she was a Venture Fellow at Bloomberg Beta and prior to that was working on data at Shareworks by Morgan Stanley.

Outline
  • Key Insights
  • The Components of a Blockchain
  • Lil Bit of Blockchain History
  • The Modularized Landscape
  • The Rest of the Discussion
Author
Eshita Nandini
Eshita is a Research Analyst at Messari focused on Web3 topics. Previously, she was a Venture Fellow at Bloomberg Beta and prior to that was working on data at Shareworks by Morgan Stanley.
41 Reportseshita