The Blockchain Trilemma
For over a decade, traditional blockchains have struggled with the “blockchain trilemma,” trying to balance decentralization, security, and scalability. As a blockchain grows in users, dApps, and transactions, the demand on its infrastructure increases, often leading to network congestion, higher gas fees, and processing delays.
Rising Demand and Network Limitations
As adoption of blockchain technology increases, networks often face challenges in handling the rising demand. Consequently, this can result in congestion, increased gas fees, and delays in processing transactions, which detract from the promise of a better internet.
Seeking Optimal Design
Despite the clear potential of web3, the blockchain community has yet to agree on the best way to design it. Although numerous solutions have been proposed, few have been widely adopted. However, in the past year, the trend has shifted towards modularity.
Understanding Modularity
Unlike monolithic chains such as early Ethereum or Solana, which are built with predefined design choices, modular infrastructure separates essential blockchain functions into independent modules. This allows for more powerful applications to be built by composing these modules together.
Ethereum’s Shift Towards Modularity
Ethereum’s move towards a rollup-centric roadmap, using layer 2 solutions like zkSync and Optimism, marked a significant shift towards modularity. This approach admits that a monolithic blockchain cannot optimize every layer of its operations beyond a certain point.
The Benefits of Modularity
Modularity proposes that instead of a single blockchain handling all operations, key functions like execution, settlement, data availability, and consensus should be separated into specialized layers. When these layers are composed together, they can support a wider variety of operations.
Developer Challenges
At the infrastructure level, developers face challenges such as steep onramps, new coding languages, and unfamiliar building environments. The one-size-fits-all nature of blockchains imposes constraints on developers, hindering complex dApp development and stifling innovation.
Modularity as a Solution
Modularity allows developers to compose the optimal blockchain stack for their specific needs. This flexibility helps overcome the limitations and idiosyncrasies imposed by traditional blockchains.
The Role of Execution Layer
The execution layer serves as an entry point for developers to experiment and build within a modular framework. As technology advances, it is essential to design tools and platforms that are easy to use, enabling wider adoption among developers.
Diverse Development Environments
Alternative virtual machines introduce diverse operating systems into blockchain infrastructure, providing better conditions for building complex, scalable applications. Consequently, this leads to a more versatile development environment.
App Chains and Rollups
Rollups allow developers to create and operate their own rollup chain or “app chain,” similar to an app having a dedicated server. This separation from the broader network’s computational demands results in a smoother, more efficient experience for dApps.
The Modular Map: Building the Optimal Stack
Modularity encourages innovation and experimentation by decoupling each layer of the blockchain stack. This allows teams to focus on providing specialized solutions at the infrastructural level, enabling greater versatility at the application level.
Interoperability and Collaboration
Interoperability is at the core of the modular thesis. Real-world applications rely on rich, complex run-time environments built on modern operating systems. Therefore, a collaborative ecosystem of protocols and solutions will foster the development of more innovative dApps.
The Future of Modularity
While discussing modular blockchain projects is faster than actual development, the modular ecosystem is still in its infancy. Over time, streamlined modular infrastructure and tools will make it easier for developers to engage with web3 technologies, overcoming current barriers to progress.
Conclusion
Modular infrastructure promises a dynamic and collaborative future in blockchain development. By overcoming the inherent limitations of previous blockchain architectures, modularity sets the stage for more innovative and complex dApps, benefiting the entire ecosystem.
The post Divide, conquer, collaborate: The definitive guide to the modular blockchain stack appeared first on CryptoSlate.
