Intermediate
Since the advent of Bitcoin in 2009 , blockchains have redefined digital exchanges by providing transparency, security and decentralization. These technologies have enabled the emergence of high impact applications, decentralized payments to decentralized finance ( DeFi ). However, first generation blockchains, like Bitcoin and Ethereum , meet limitations. Their conception, qualified as a monolithic, brings together all the necessary functions in a single architecture, which hinders their scalability and their ability to evolve with massive adoption.
To overcome these challenges, a new approach, called modular blockchain , is born. But before diving into this innovation, let's examine the basics of monolithic blockchains and their limits.
Table of contents
Understand monolithic blockchains and their limits
The essential functions of a monolithic blockchain
A monolithic blockchain brings together three key functions in a single architecture:
- Execution: Treatment of transactions and execution of smart contract contracts .
- Consensus: Agreement between participants on the order and validity of transactions.
- Data availability: Storage and dissemination of information necessary for verification of transactions.
In this model, all the nodes of the network are responsible for these three functions. For example, a node in Bitcoin or Ethereum must both execute transactions, participate in the consensus mechanism ( Proof of Work or Proof of Stake ) and store all the historical data of the blockchain. This centralization of tasks increases the load on the nodes and limits the capacity of the network to manage a large number of users.
The challenges of monolithic blockchains and their link with the Blockchain trilemma
- Excessive charge on nodes: impact on decentralization
Each node must perform all functions: data storage, transactions execution and consensus participation. This imposes high material requirements, making the operation of the nodes costly and complex. This phenomenon limits the number of participants capable of maintaining a node, which reduces the decentralization of the network. Thus, to maintain a certain scalability and security, monolithic blockchains often sacrifice decentralization.
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- Lack of flexibility: Impact on security and innovation
The monolithic blockchains bringing together all their functions in a single layer, this rigid architecture complicates specific improvements without disturbing the entire system. For example, correcting a flaw or adopting technological innovation can expose the network to additional risks or temporary instability. This compromise slows down innovation and can affect overall security, because any attempt at evolution jeopardizes the current balance.
- Reduced scalability: direct impact on network capacity
As the number of users increases, the congestion of the network becomes inevitable in a monolithic blockchain. Each node having to execute all transactions, the physical and technical limits of the weakest nodes slow down the network. This results in high deadlines and costs, as observed on Ethereum during periods of high activity. To improve scalability, it is often necessary to make concessions on decentralization or safety.
An illustration of the Blockchain Trilemma
These challenges show how monolithic blockchains are directly confronted with the Blockchain trilemma, which stipulates that it is impossible to optimize security, scalability and decentralization simultaneously:
- Decentralization vs scalability: excessive charge on nodes pushes to centralize the network to guarantee performance, thus sacrificing decentralization.
- Safety vs innovation: The lack of flexibility makes it difficult to improve or innovation without compromising security.
- Scalability vs decentralization: The technical limits of individual nodes reduce the overall capacity of the network while maintaining a truly decentralized infrastructure.
Why is modular blockchain a solution?
The modular blockchain offers an architecture where each function is separated into independent layers, managed by specialized nodes. This approach makes it possible to distribute the workload and optimize each component.
Diapers in a modular blockchain
- The execution layer: Treat transactions and execute the smart contract The
execution layer is at the heart of the management of interactions in a blockchain. Treating transactions means registering and validating user actions, such as sending or receiving cryptocurrencies, or interaction with decentralized applications ( dApp S). Executing the smart contract S , on the other hand, consists in automatically apply preprogrammed instructions as soon as certain conditions are met. For example, a smart contract could release funds only if a deadline is reached or if a certain amount has been collected. In modular blockchains, this layer is often delegated to solutions such as Rollups (e.g. Arbitrum , optimism), which bring together and treat a large volume of transactions out of the main channel to optimize performance.
- The consensus layer: validate and order the transactions
The consensus layer guarantees that all the transactions processed by the blockchain respect the established rules and that they are validated in a specific order. This avoids conflicts such as double expenditure (using the same cryptocurrency for several transactions). It is based on mechanisms like the Proof of Stake (POS) , where validators, selected according to the quantity of tokens they hold and put into play, ensure the checking of the blocks. Concretely, this layer decides on the chronological order of transactions and guarantees that only valid transactions are added to the unchanging blockchain register. Ethereum , for example, often plays the role of a layer of consensus in modular solutions.
- The data availability layer: Providing the information necessary for verification
data availability layer ensures that all the information necessary to validate the transactions and the blocks is accessible at any time. These data include, for example, cryptographic evidence of transactions, recordings of account balances or even details of smart contract . This layer is essential to allow validators and users to independently check the validity of the blocks.
In modular blockchains, solutions like Celestia innovate by using advanced techniques such as Data Availability Sampling . This method makes it possible to verify that the data is available without having to download it entirely, which improves scalability and reduces storage needs.
Advantages of a modular blockchain
- Better scalability:
by dividing the tasks between specialized layers, each function can evolve independently, allowing more transactions to manage the network. - Increased flexibility:
developers can choose the best suited solutions for each layer, creating tailor -made architectures for their applications. - Interoperability:
layers can interact with different blockchains, facilitating exchanges and collaboration between networks.
How does a modular blockchain work?
Take the example of Celestia , a pioneer of modular blockchains. This network focuses on two functions: consensus and data availability. Here's how it works:
1. Management of data availability
Celestia uses Data Availability Sampling (DAS), a method that divides data blocks into fragments called shares . These fragments are distributed on the network and verified by light nodes. Rather than storing the entire block, each node samples part of the data, thus reducing storage needs while ensuring that all the data is available.
2. Decentralized consensus
Celestia consensus is based on the Tendermint ( Proof of Stake ) algorithm, where validators ensure that the blocks respect the rules of the protocol. This allows Celestia to remain secure while delegating the execution of transactions to other layers.
3. Integration with execution layers
Developers can connect their execution layers, such as Rollups or channels specific to an application ( appchains ), Celestia . These diapers treat outside chain transactions and submit evidence of validity to Celestia for storage and validation.
4. Interoperability and personalization
Thanks to this architecture, Celestia facilitates interoperability between different networks. Developers can combine solutions to meet the specific needs of their applications, such as DeFi platforms or blockchain games.
A concrete example of synchronization of diapers of a modular blockchain
Imagine a dApp deployed on a Rollup connected to Celestia :
- Transactions are processed by the Rollup (execution layer).
- The Rollup submits evidence of validity to Celestia (layer of consensus).
- Celestia stores associated data (data availability layer), guaranteeing their accessibility for verification.
This separation allows each layer to excel in their specialty, offering a faster, secure and scalable network.
Conclusion: towards a modular future for blockchain
Modular blockchains redefine the basics of Blockchain technology by responding directly to the limits of monolithic systems. By separating the essential functions in specialized layers, they offer a solution to the Blockchain trilemma , balancing scalability, security and decentralization.
Projects like Celestia open the way to a modular ecosystem, where each component can evolve independently, thus facilitating the adoption of blockchain in various fields. While the web3 continues to grow, this approach may well be the key to building a sustainable decentralized infrastructure.
FAQ on the modular blockchain
- What is a modular blockchain ?
It is an architecture that separates the main functions (execution, consensus, availability of data) in managed layers independently to improve scalability and flexibility. - What difference between monolithic and modular ?
A monolithic blockchain brings together all its functions in a single structure, while a modular blockchain divides them between specialized layers. - Why Celestia important ?
Celestia focuses on consensus and data availability, allowing developers to create tailor -made execution solutions. - What are the advantages for dApp S ?
DAPPs benefit from faster, customizable and interoperable infrastructure, reducing costs and improving the user experience dApp
Additional readings on the blockchain: to deepen your knowledge, click on the words in fat to discover our articles on the Layer 2 , the Blockchain Trilemme and the Sharding .
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Yohan Uzzan
Training engineer, I quickly became interested in the field of finance. Convinced that decentralized finance has a bright future ahead of it, I participate in its democratization by developing Crypternon.
