A modular blockchain is a construction that distributes core blockchain capabilities (execution, consensus, information availability, and settlement) into completely different, particular layers. This modular structure permits one layer to deal with a specific process whereas assigning the opposite two or three capabilities to different chains.
Modular chains do that to enhance scalability and decentralization within the blockchain ecosystem with out sacrificing safety. The important thing benefits of a modular structure are that it solves the normal blockchain know-how scalability issues, reduces transaction prices, provides builders the flexibleness to customise parts, and deploys initiatives sooner.
However that’s not all there may be to know concerning the modular blockchain construction. This text will reply questions like: What’s a modular blockchain? And what are the variations between monolithic and modular blockchains? As well as, we are going to discover real-world examples of modular blockchains like Celestia, Optimism, and Polygon Avail. Let’s get began!
What Are Modular Blockchains?
Modular blockchains are a kind of blockchain structure that creates a extra scalable system with out compromising decentralization or safety. They do that by splitting blockchain know-how’s core duties—execution, consensus, information availability, and settlement—into segments or modules as an alternative of doing all of them on a single layer.
Execution: That is the place transactions and sensible contracts are processed.Consensus: The consensus layer ensures that every one community contributors agree on the order and validity of transactions.Knowledge Availability: That is the place all transaction information is made publicly accessible in order that anybody can confirm the blockchain’s state.Settlement: That is the ultimate affirmation layer, guaranteeing all processed information is anchored and safe.
Usually, blockchain structure wants three parts: safety, decentralization, and scalability. Nevertheless, earlier than modular chains, no community within the blockchain business may obtain these parts efficiently as a result of monolithic chains are designed to deal with all of the above duties in a single layer. Therefore, these chains face the “Blockchain Scalability Trilemma.”
For monolithic blockchains, compromising on safety might be an enormous drawback, so most chains are both decentralized and safe or scalable and safe. Nevertheless, modular blockchains are constructed to carry out core duties on completely different layers, with every module optimized for a selected perform. Collectively, they kind an entire and extra scalable blockchain system.
There are three strategies of implementing modular blockchains: Rollups, Validium, and Sovereign Rollups. Here’s a breakdown of how these major strategies tackle scalability points and decentralization.
Rollups: Rollups course of transactions off-chain and bundle them into batches for submission to a base layer-1 (L1) blockchain system for settlement, consensus, and information availability. There are two sorts of rollups: optimistic and ZK rollups. Optimistic Rollups assume all transactions are legitimate except confirmed false, whereas ZK rollups assume all transactions are false till confirmed in any other case.Validium: Validium is a variation of rollups that mixes off-chain execution with off-chain information availability. It makes use of a community of Proof-of-Stake validators to retailer transaction information off-chain. Batches are then submitted to the L1 together with validity proofs (e.g., zk-proofs) with out the info, which boosts scalability considerably.Sovereign Rollups perform as each an execution and settlement layer, with information blocks printed immediately onto the rollup. They deal with execution and settlement whereas outsourcing consensus and information availability to a modular layer (e.g., Celestia). In contrast to rollups and Validium, sovereign rollups don’t require L1 sensible contracts for validation.
Now that we’ve highlighted the idea of modular blockchains, their construction, and implementation strategies, let’s look at how modular blockchains work.
How Does a Modular Blockchain Work?
Modular blockchains work by dividing the 4 core parts of blockchain know-how, that are execution, consensus, information availability, and settlement, into distinct layers.
Execution
The execution layer is chargeable for processing transactions and updating the community’s state. When a transaction is submitted, it enters the execution module, which processes it towards the community’s present state. This layer maintains a queue of pending transactions, organizes them into batches, and updates the related information, corresponding to account balances and occasion logs.
On the finish of every batch, the execution layer computes a brand new cryptographic state root, which represents the up to date state of the system after processing the batch. In a modular blockchain structure, the execution module is optimized to course of transactions. It may well alter parameters like block measurement, fuel charges, and validator consensus to enhance throughput and scale back prices.
After updating the state, it should validate its work with the broader community. As an example, in a ZK-rollup mannequin, the execution layer generates a zero-knowledge proof—a cryptographic certificates—confirming that every one state transitions have been accurately processed. As soon as verified, this proof supplies near-instant finality.
In the meantime, in an optimistic rollup mannequin, as an alternative of producing a proof, the execution module publishes the uncooked transaction information and the brand new state root. The community then enters a “problem window” the place any participant can submit a fraud proof in the event that they detect an invalid transaction. If no challenges are raised, the batch is taken into account closing.
Consensus
The consensus layer is necessary for reaching an settlement on the blockchain’s present state. It ensures that each participant within the community, together with nodes, miners, and validators, agrees on the legitimacy of every transaction, the validity of blocks, and the precise order by which transactions are recorded onto the blockchain.
This course of is key for the community’s decentralization and safety because it eliminates the necessity for a government to confirm transactions. By means of consensus mechanisms corresponding to Proof of Work (PoW), Proof of Stake (PoS), and others, the chain ensures that every one community contributors observe the identical guidelines and protocols, stopping double-spending, fraud, and discrepancies throughout the distributed ledger.
Knowledge Availability
Knowledge availability is the method that ensures entry to requested information throughout the blockchain system at any time. This layer shops the transaction information after completion, enabling community contributors to confirm it towards historic data later. For that reason, block producers should publish the info from block manufacturing for community friends to obtain, retailer, and confirm later.
Utilizing Rollups, as an illustration, proofs (for ZK rollups) or calldata (for optimistic rollups) are ineffective except somebody can entry the underlying transactions. That is the place a devoted information availability (DA) layer is available in. So, as an alternative of crowding the settlement layer with gigabytes of knowledge, the execution module posts its proofs or full calldata to a DA community corresponding to Celestia or Polygon Avail.
These networks are optimized for storing and serving transaction information: they run mild‑shopper–pleasant erasure coding, chunk sampling, and protocols to ensure that anybody can later reconstruct the total batch. This separation ensures that nodes validating proofs do not need to bear the lengthy‑time period burden of storing each transaction ever processed.
Settlement
The ultimate step is anchoring your work to a excessive‑safety settlement layer, which may very well be a big proof‑of‑stake chain like Ethereum. The execution layer submits a transaction that features both the zero‑data proof (ZK‑rollups) or the state root plus a reference (e.g., a Merkle root) to the DA layer’s batch (optimistic rollups).
As soon as that transaction is put in a finalized block on the settlement chain, the batch inherits its financial safety, decentralization, and censorship resistance. ZK‑rollups obtain finality as soon as the proof is verified, whereas optimistic rollups wait out their problem window earlier than contemplating the batch irrevocable.
Through the use of a modular blockchain structure, networks can optimize every element independently. As an example, rollups can focus solely on execution whereas outsourcing consensus and information availability to extra strong layers like Ethereum or Celestia. This separation results in extra environment friendly, scalable, and customizable blockchain ecosystems.
What Are the Professionals and Cons of Modular Blockchain?
The professionals and cons of modular blockchains are listed beneath:
Professionals of Modular Blockchains
The professionals of modular blockchains are pace, scalability, financial sustainability, flexibility, specialization, improved upgradability, and interoperability.
Velocity: In contrast to monolithic blockchains, which deal with all execution, consensus, information availability, and settlement on a single chain, modular blockchains break up them into completely different modules, making them quick even because the community scales.Scalability: Modular blockchains enhance scalability by specializing in one process and delegating different duties to separate layers, which allows every layer to carry out independently and scale as wanted. For instance, information availability layers can broaden to deal with extra and scale throughput with none modifications within the execution module.Financial Sustainability and Price-effectiveness: Modular designs scale back congestion and value on Layer 1 by shifting intensive duties like execution and information availability off-chain. This, in flip, permits customers to profit from sooner and cheaper transactions, particularly in rollup environments.Specialization: Every layer could be designed and optimized for a selected perform. Execution layers can deal with excessive throughput and low latency, consensus layers on validator coordination and safety, and information availability layers on reliably storing and serving information from all/a number of transactions.Flexibility: Builders can select any digital machine, parts, or information availability options of their selection. This “construct your personal stack” modular method helps sooner experimentation and customization with out ranging from scratch.Improved Upgradability: Since every element is unbiased, upgrades and modifications could be made on one layer with out affecting the others, guaranteeing sooner and extra seamless growth cycles.
Cons of Modular Blockchains
The cons of modular blockchains are elevated growth complexities and latency points.
Elevated Growth Complexity: As every perform is split into completely different layers, it will increase the general complexity of the system. This may scale back adoption charges by performing as a barrier for builders and customers who should perceive and work together with a number of parts.Latency Points: Communication between completely different layers results in latency, particularly when completely different layers are maintained by separate groups or networks. Moreover, modular designs haven’t been totally examined like monolithic chains, so till then, there should be considerations about their resilience.
What Are the Completely different Forms of Modular Blockchain Networks?
The various kinds of modular blockchain networks are consensus, information availability, execution, hybrid chains, and interoperability frameworks. Under is a rundown of those modular blockchain networks and their completely different core capabilities.
Consensus Layer Networks
These networks are chargeable for finalizing transactions and securing the complete ecosystem. By operating a big, decentralized set of validators (or miners), they assure that it turns into immutable as soon as a block is accepted. Greater‑degree chains anchor their proof or state roots to those layers to inherit censorship resistance and financial safety.
Ethereum is an effective instance because it gives robust decentralization and a proof‑of‑stake mechanism. On the identical time, networks like Avalanche’s C‑Chain prioritize sub‑two‑second finality at the price of a smaller validator set.
Knowledge Availability Layer Networks
Relatively than executing transactions, DA layers deal with reliably publishing and storing transactional information in order that any community can retrieve and reconstruct state. By offloading information storage, they relieve execution chains of this burden and allow light-weight purchasers.
As an example, Celestia led the modular blockchain area by permitting arbitrary rollups or sovereign chains to put up batches of transactions and later obtain the entire information to confirm correctness. Polygon Avail follows the same mannequin however targets increased throughput and gives decrease posting charges.
Execution Layer Networks (Rollups)
Execution layers bundle, execute, and order transactions off‑chain, then put up concise proofs or problem information again to a DA or settlement layer. Optimistic rollups, corresponding to Arbitrum and Optimism, assume transactions are legitimate and make use of fraud proofs to problem incorrect batches inside a dispute window.
ZK‑rollups like zkSync and StarkNet assume transactions are false till confirmed in any other case. They generate cryptographic proofs that attest to the validity of every batch earlier than it’s printed, which allows close to‑instantaneous finality and stronger safety assurances.
Hybrid Modular Blockchains
These networks mix execution with consensus or information‑availability preparations. A superb instance is Validiums (e.g., StarkEx Validium), which execute transactions and produce ZK proofs like ZK‑rollups however retailer information off‑chain underneath the custody of a specialised information availability committee, decreasing prices whereas introducing belief assumptions.
Right here, initiatives typically mix layers for tailor-made options. As an example, Manta Community makes use of Celestia for DA, Ethereum for settlement, and Polygon CDK for execution. In the meantime, EigenLayer enhances safety by permitting Ethereum validators to “restake” belongings throughout modular blockchains.
Interoperability Frameworks
Interoperability frameworks or Layer 0 networks provide a standard safety layer, governance construction, and messaging protocols to a group of related chains. Polkadot’s Relay Chain secures its parachains and facilitates cross‑chain message passing through a shared safety mannequin.
However, Cosmos’ Inter‑Blockchain Communication (IBC) protocol hyperlinks autonomous “zones” to the Cosmos Hub, permitting token transfers and information trade throughout in any other case unbiased parts or blockchains.
What’s the Distinction Between Monolithic Vs Modular?
The desk beneath reveals the variations between monolithic and modular blockchain designs:
Blockchain StructureModular BlockchainMonolithic BlockchainArchitectureFeatures are separated into specialised layers or modules (execution, consensus, information availability, settlement), every optimized independently.In monolithic chains, all core capabilities are dealt with on a single layer by the identical blockchain nodes.ScalabilityThe modular structure mitigates scalability points by optimizing related modules for pace and execution.The monolithic blockchain construction can solely obtain scalability on the expense of safety and decentralization.FlexibilityBuilders can customise or change modules to swimsuit particular use circumstances with out affecting the complete community.Mounted construction. All purposes share the identical execution setting, limiting customization.SafetySafety relies on the mixed safety of particular person modules; it might depend on guardian chains for shared safety, which remains to be evolving at scale.Monolithic blockchains have robust safety ensures as a result of all nodes validate transactions and information.UpgradabilitySimple. Modules could be upgraded or changed independently, decreasing downtime and dangers throughout upgrades.Troublesome. Upgrades require overhauling the complete system, typically resulting in downtime or advanced arduous forks.ComplexityMore advanced on account of a number of interacting layers and superior protocols like information availability, sampling, and fraud proofs.Less complicated design with a single built-in system, simpler to grasp and develop. ExamplesCelestia, Optimism, Arbitrum, and Eigen Layer.Solana, Tron, and Bitcoin.
What Are Examples of Modular Blockchain Tasks?
The examples of the modular blockchains are Celestia, Ethereum, Polygon Avail, Dymension, Gasoline Community, and Eigen Layer. Here’s a detailed breakdown of among the greatest modular blockchains.
Celestia
Celestia is the primary modular blockchain community. It launched in October 2023 and was constructed particularly for information availability sampling and consensus. As a substitute of managing consensus for purposes, it focuses on making transaction information accessible and verifiable for different chains. Celestia offloads information availability from layer-1 blockchains, permitting them to scale extra easily.
Ethereum
Ethereum is an information availability and consensus modular blockchain. On Ethereum, Rollups like Optimism and Arbitrum deal with execution off-chain, whereas the guardian chain (Ethereum) supplies consensus and information availability. The community scales by rollup-centric execution modules whereas sustaining decentralization.
Polygon Avail
Polygon Avail is a modular blockchain centered on information availability, much like Celestia, however built-in throughout the Polygon ecosystem. It helps scalable app-chains and rollups. As well as, Polygon Avail is designed to serve modular blockchains with off-chain execution, particularly these within the Polygon ecosystem.
Dymension
Dymension is an execution layer modular chain that launched “RollApps,” that are application-specific rollups related to a modular base layer. It allows builders to create high-performance app-chains with customizable execution environments. It additionally creates scalable app-specific chains utilizing a shared information availability layer.
Gasoline Community
Gasoline is an execution layer optimized for efficiency and suppleness, notably with modular information availability layers like Celestia and Polygon Avail. It makes use of parallel transaction execution and an Unspent transaction output (UTXO) mannequin to maximise pace and effectivity. The UTXO mannequin is a method the Bitcoin protocol makes use of to trace balances as they transfer between crypto wallets.
EigenLayer
EigenLayer allows Ethereum merchants to “restake” their ETH and supply safety to new modular chains and providers, making a decentralized community/market for shared safety. As a safety layer community, it provides a versatile safety mechanism to the modular stack.
What’s the First Modular Blockchain?
The primary modular blockchain is Celestia. Celestia’s mainnet launched in October 2023, marking it the primary in-production modular blockchain. This launch pioneered the modular chain structure by separating core capabilities, particularly consensus and blockchain information availability, from execution and settlement, which different networks deal with.
This design permits Celestia to deal with ordering and publishing transaction information, whereas different layers deal with transaction execution and validation. All of the required layers be sure that blockchain initiatives constructed on them are safe, decentralized, and scalable.
Is Solana a Modular Blockchain?
No, Solana is just not a modular blockchain. Though it has solved scalability points by rising block sizes, it lacks decentralization as the necessities for validators are too excessive.
