An Introduction to Modular Blockchains

The
evolution
of

blockchain
technology
has
led
to
the
rise
of
efficient
and
specialized
architectures,
which
are
better
than
traditional
designs.
The
traditional
monolithic
blockchains
have
been
showing
problems
with
flexibility
and
scalability.
You
can
use
this
modular
blockchain
guide
to
figure
out
how
modular
blockchains
can
solve
the
problems
associated
with
monolithic
blockchains.
Modular
blockchains
have
a
different
design
philosophy
that
enables
them
to
divide
the
core
functions
of
blockchain
into
different
modules.

The
separation
of
modules
helps
in
developing,
maintaining
and
upgrading
each
module
independently,
thereby
improving
adaptability
and
efficiency.
Modular
blockchains
offer
a
more
scalable
and
flexible
alternative
to
traditional
blockchain
architectures.
Rather
than
burdening
a
single
chain
with
all
the
responsibilities,
modular
blockchains
work
by
dividing
the
core
tasks
and
focusing
on
one
task
while
delegating
other
tasks
to
other
chains.
Let
us
discover
how
modular
blockchains
work
and
the
benefits
they
bring
to
the
table
in
this
modular
blockchain
guide. 

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Understanding
the
Reasons
for
the
Shift
to
Modular
Blockchains

Blockchain
technology
creates
waves
of
excitement
in
the
modern
technological
landscape
within
a
few
years.
It
is
reasonable
to
believe
that
a
new
approach
to
storing
and
exchanging
information
with
the
advantages
of

decentralization
and

cryptographic
security
will
be
irreplaceable.
Why
do
you
need
a
blockchain
modular
structure
when
you
can
find
multiple
benefits
with
monolithic
blockchains?
The
transition
to
a
modular
structure
represents
a
major
milestone
in
the
evolution
of
blockchain
technology.

Monolithic
blockchain
architecture
involved
creation
of
an
immutable
ledger
that
prioritized
security
and
data
integrity
above
everything
else.
While
the
monolithic
design
ensures
better
security
and
trust,
it
presents
certain
limitations.
The
limitations
of
monolithic
blockchain
architecture
creates
problems
for
adoption
of
blockchain
technology
in
various
sectors
such
as
supply
chain
management,
finance
and
healthcare.
The
following
factors
associated
with
monolithic
blockchains
can
help
you
understand
why
the
transition
to
modular
architecture
is
essential.

Lack
of
Flexibility 

The
most
noticeable
setback
in
monolithic
blockchains
is
the
lack
of
flexibility.
You
need
to
find
answers
to
queries
like
‘Which
blockchains
are
modular?’
because
monolithic
blockchains
present
problems
for
introducing
new
changes
and
upgrades.
All
the
components
in
monolithic
blockchains
are
tightly
integrated
with
each
other
thereby
implying
the
need
for
extensive
testing
and
consensus
to
introduce
small
changes.
Therefore,
monolithic
architecture
creates
huge
pitfalls
for
adaptation
and
innovation
in
the
blockchain
landscape.

Efficiency
Concerns

Monolithic
blockchains
might
have
an
upper
hand
when
it
comes
to
security
and
trust.
At
the
same
time,
it
is
also
important
to
note
that
monolithic
blockchains
require
significant
amounts
of
computational
power
and
energy.
Maintenance
of
monolithic
blockchain
networks
can
be
a
daunting
task
in
terms
of
costs,
thereby
making
them
less
sustainable
in
the
long
term. 

Challenge
of
Scalability 

Scalability
is
an
essential
requirement
for
growth
of

blockchain
networks.
Monolithic
blockchain
architecture
fails
to
stand
up
to
the
growing
demands
from
the
network
with
rising
volume
of
transactions.
All
nodes
in
the
monolithic
architecture
have
to
process
and
validate
each
transaction,
thereby
leading
to
network
congestion.
As
the
number
of
users
on
the
blockchain
network
increases,
you
are
likely
to
end
up
with
higher
fees
and
slower
transaction
speed.

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now
in
the Blockchain
Scalability
and
Interoperability
Mastery
Course
to
learn
the
skills
needed
to
develop
faster,
scalable,
robust,
and
interoperable
dApps.

Unraveling
the
Definition
of
Modular
Blockchain 

The
overview
of
the
challenges
associated
with
monolithic
blockchain
architecture
reveals
the
urgency
of
introducing
an
alternative.
Modular
blockchains
help
in
resolving
the
notable
issues
that
come
with
monolithic
architecture.
You
can
define
modular
blockchains
as
a
new
approach
to
blockchain
architecture
in
which
different
components
are
available
in
different
layers. 

The
architecture
of
modular
blockchain
projects
primarily
involves
different
layers
dedicated
to
consensus,
execution
and
data
availability.
The
modular
approach
provides
a
better
foundation
for
improving
efficiency
and
scalability
with
each
module
independently
managing
specific
functions.

Decoupling
the
components
in
modular
blockchain
architecture
can
help
in
achieving
better
flexibility
and
throughput
than
monolithic
blockchains. 

The
primary
objective
underlying
the
arrival
of
modular
blockchains
focuses
on
offering
a
more
scalable,
effective,
secure
and
affordable
system.
The
long-term
objective
of
modular
blockchains
revolves
around
attracting
more
users
and
developers
to
blockchain,
thereby
expanding
the
scope
for
innovation. 

Discovering
the
Specialty
of
Modular
Blockchain
Architecture

The
uniqueness
of
modular
blockchains
creates
curiosity
about
their
architecture.
As
the
name
implies,
modular
blockchains
work
with
different
modules
rather
than
one
blockchain
only.
The
modules
in
the
modular
blockchain
architecture
address
a
specific
element
of
blockchain
operations,
thereby
ensuring
efficient
distribution
of
labor.
Let
us
take
a
look
at
the
important
layers
or
modules
in
the
architecture
to
understand
how
they
work
in
this
modular
blockchain
guide. 

• 
  Consensus
  Layer 

The
consensus
layer
is
a
prominent
addition
among
modular
blockchain
examples
as
consensus
is
a
mandatory
requirement
for
reaching
agreement
on
the
state
of
a
blockchain.
It
is
responsible
for
ensuring
that
all
the
network
participants
agree
on
the
transactions
and
the
order
in
which
they
are
added
to
the
blockchain.
The
modular
architecture
enables
separation
of
the
consensus
layer
that
allows
the
use
of
different

consensus
mechanisms
tailored
to
specific
needs.

• 
  Data
  Availability
  Layer 

Data
availability
layer
is
responsible
for
storage
and
maintenance
of
data
associated
with
the
blockchain.
It
helps
in
ensuring
instant
availability
of
data
associated
with

smart
contracts
and
transactions
to
all
network
participants.
The
separation
of
the
data
availability
layer
allows
better
flexibility
for
optimization
of
data
storage
and
retrieval.
The
data
availability
layer
plays
a
major
role
in
improving
the
integrity
of
blockchain
network
without
increasing
costs
or
losing
speed. 

• 
  Execution
  Layer 

The
execution
layer
serves
as
the
destination
where
the
actual
processing
of
transactions
happens.
You
will
find
transaction
processing
and
execution
of
smart
contracts
only
in
this
layer.
The
execution
layer
module
enables
the
blockchain
to
manage
large
volumes
of
transactions
and
more
complex
tasks
without
increasing
the
burden
on
the
network.
It
can
contribute
to
improvements
in
efficiency
and
processing
speed
of
the
blockchain
network. 

Another
important
layer
in
the
architecture
of
modular
blockchains
is
the
settlement
layer.
The
settlement
layer
is
responsible
for
verifying
the
finality
of
transactions
and
resolving
disputes.
All
these
layers
in
a
modular
blockchain
guide
work
independently
to
enhance
flexibility
alongside
improving
the
scope
for
specialization.
The
architecture
of
modular
blockchains
supports
the
optimization
of
each
layer
for
specific
functions,
thereby
creating
more
scalable
and
faster
blockchains.

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Identifying
the
Top
Real
World
Examples
of
Modular
Blockchains

Modular
blockchains
offer
benefits
that
could
change
the
face
of
the

blockchain
ecosystem
with
new
opportunities
for
users
and
developers.
You
can
find
multiple
examples
of
modular
blockchains
in
the
real
world
that
have
been
changing
the
conventional
perspectives
on
blockchain
technology.
One
of
the
foremost
examples
among
popular
modular
blockchains
is
Celestia,
a
modular
data
availability
network.
It
offers
an
innovative
approach
for
designing
blockchain
infrastructure
with
a
mission
to
make
blockchain
technology
more
user-friendly
and
accessible. 

Another
real
world
example
of
modular
blockchains
is
Syscoin,
which
is
leading
the
revolution
in
blockchain
innovation.
It
offers
a
unique

layer
1
solution
that
focuses
predominantly
on
regulatory
compliance.
Syscoin
has
come
up
with
the
possibilities
of
native
regulatory
compliance
tokens
to
ensure
that
regulatory
compliance
is
integrated
within
the
consensus
layer
of
a
blockchain.
The
breakthrough
technology
used
by
Syscoin
focuses
on
revolutionizing
blockchain
processing
power
and
employing
parallel
processing
techniques.     

Diving
Deeper
Into
Advantages
of
Modular
Blockchains 

The
discussions
about
queries
like
‘Which
blockchains
are
modular?’
would
be
incomplete
without
the
benefits
of
modular
blockchains.
You
should
learn
about
the
advantages
of
modular
blockchains
to
understand
why
it
is
important
to
introduce
them
in
the
blockchain
landscape
now.
The
foremost
benefit
of
modular
blockchains
is
the
assurance
of
improved
scalability
that
is
possible
due
to
division
of
tasks.
Modular
blockchain
designs
offer
a
more
scalable,
adaptable
and
customizable
system
than
monolithic
architecture.
At
the
same
time,
modular
blockchains
do
not
compromise
with
decentralization
or
security.

The
next
important
advantage
of
modular
blockchains
is
affordability
as
modular
blockchains
can
be
accessible
at
lower
costs.
It
would
enable
faster
development
and
launch
of
new
blockchain
and

web3
solutions.
Modular
blockchains
also
offer
significantly
better
security
as
developers
can
enjoy
the
flexibility
for
independent
assessment
and
testing
of
blockchain
components. 

The
most
noticeable
advantage
that
you
can
explore
with
modular
blockchains
is
the
opportunity
to
access
new
avenues
for
innovation.
The
flexibility
of
modular
blockchain
architecture
allows
developers
to
experiment
with
different
ideas
and
make
the
most
of
customization
to
create
innovative
solutions.

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Should
You
Worry
about
Limitations
in
Modular
Blockchains?

Yes,
you
are
likely
to
encounter
certain
limitations
in
modular
blockchain
architecture.
Awareness
of
the
limitations
can
help
you
make
the
most
of
modular

blockchain
projects
according
to
your
requirements.
First
of
all,
you
must
notice
that
the
overall
system
would
become
more
complex
with
developers
having
their
customized
modules.
The
network
capabilities
of
modular
blockchains
have
not
been
exposed
to
extensive
testing
like
monolithic
architectures.

Final
Thoughts 

The
modular
blockchain
guide
reveals
that
they
can
solve
many
issues
that
are
associated
with
monolithic
blockchain
architectures.
Modular
blockchains
can
create
an
easier
path
for
the
adoption
of

blockchain
solutions
in
various
sectors.
The
most
important
highlight
of
modular
blockchains
is
the
separation
of
different
core
functionalities
into
distinct
modules
that
work
independently.
Find
more
insights
on
modular
blockchains
and
their
applications
in
the
real
world
right
now.

*Disclaimer:
The
article
should
not
be
taken
as,
and
is
not
intended
to
provide
any
investment
advice.
Claims
made
in
this
article
do
not
constitute
investment
advice
and
should
not
be
taken
as
such.
101
Blockchains
shall
not
be
responsible
for
any
loss
sustained
by
any
person
who
relies
on
this
article.
Do
your
own
research!