Modular Blockchain: Pluggable Solutions to Performance Bottlenecks

The development of blockchain technology has faced scalability challenges with monolithic blockchain systems. As a new type of architecture, modular blockchain offers a fresh perspective for solving this problem by separating different functionalities of the blockchain into independent modules.

Monolithic Blockchain vs Modular Blockchain

Monolithic blockchains like Bitcoin and Ethereum independently bear the various functional aspects of the network, from data storage to transaction validation to smart contract execution. Taking Ethereum as an example, a mature monolithic blockchain generally consists of four architectures: execution layer, settlement layer, data availability layer, and consensus layer.

In contrast, modular blockchain breaks down the blockchain system into multiple specialized components or layers, with each component responsible for handling specific tasks. This focus allows modular blockchain to provide better performance and user experience for specific functions.

In terms of node architecture, monolithic chains rely on full nodes, while modular blockchains adopt a light node design, significantly improving transaction speed and network efficiency. The flexibility and collaboration of modular blockchains allow them to outsource non-core functions to other experts, creating synergies and enhancing overall performance.

How Modular Blockchain Solves the "Trilemma"

The "impossible triangle" of Blockchain refers to the difficulty of a blockchain network in simultaneously achieving optimal states in security, decentralization, and scalability, the three core attributes. Modular blockchain addresses the challenges of traditional public chains in scalability and transaction costs by allocating different functions to specialized modules.

The layered architecture of a modular blockchain allows each layer to be optimized for specific needs. The data layer can focus on data storage and validation, while the execution layer can handle smart contract logic. This separation not only enhances performance and efficiency but also promotes interoperability between different blockchains.

Main Classifications of Modular Blockchain

Modular blockchain can be classified into three aspects: execution layer, data availability layer, consensus layer, and settlement layer.

Execution Layer - Layer 2 Technology

Layer 2 technology is an extension of the execution layer in the blockchain architecture, enhancing the scalability of the main chain through off-chain networks built on top of the underlying blockchain. Rollup technology is currently the most mainstream solution for Layer 2, with the core idea being "off-chain execution, on-chain verification."

Mainstream Rollup technologies include:

• Optimistic Rollups: Adopts a proof of error mechanism, assuming all transactions are valid by default, ensuring network fairness through proof of error during the challenge period.

• ZK Rollups: Adopts a validity proof mechanism, requiring all transactions to undergo validity proof before being accepted, providing a zero-error settlement mechanism.

Data Availability Layer and Consensus Layer

Celestia

Celestia, as a pioneer in the modular blockchain field, is essentially a data availability layer that provides the foundation for the development of dApps and Rollups. Its innovative technologies include:

• Erasure coding technology: By introducing data redundancy, it ensures the complete recovery of the original data block even in the case of up to 50% data loss.

• Data Availability Sampling ( DAS ): Light nodes verify the availability of block data through multiple rounds of random sampling, without the need to download the entire block data.

EigenDA

EigenDA is the first active verification service launched on EigenLayer (AVS), providing secure, high-throughput, and decentralized data availability services for Layer 2. It utilizes the stakers of the Ethereum consensus layer as validators, avoiding the trust risks associated with centralized service providers or proprietary tokens.

Avail

Avail is a modular blockchain project launched by the Polygon team, with its core architecture including Avail DA, Avail Nexus, and Avail Fusion. Avail DA provides DA services for various blockchains, Avail Nexus offers a cross-chain messaging protocol, and Avail Fusion introduces a POS consensus with multi-asset staking.

settlement layer

Dymension

Dymension is a modular blockchain platform based on Cosmos, providing a framework for the development of RollApps through its built-in scalability aggregation technology. Its core components include:

• RollApp: A high-performance modular blockchain designed for specific applications.
• Dymension Hub: serves as the consensus layer and settlement layer, providing final transaction confirmation and settlement services for RollApps.

Cevmos

Cevmos aims to provide a settlement layer for EVM-compatible rollups. As a rollup, all rollups built on Cevmos are referred to as settlement rollups. Cevmos publishes data to Celestia and executes rollup proofs as a settlement layer.

Exploration of Modular Blockchain in the Bitcoin Ecosystem

The Bitcoin network, as a stateless non-smart contract network, has design flaws mainly stemming from the limitations of the UTXO account system and the non-Turing complete scripting language. Therefore, Bitcoin's demand for modularization is more urgent than that of Ethereum.

Merlin

Merlin Chain, as a Bitcoin Layer 2 network, supports multiple native Bitcoin assets while being compatible with EVM. Its functions revolve around the ZK-Rollup network, decentralized oracle network, and on-chain fraud prevention.

B² Network

B² Network adopts a modular design, with the Rollup layer responsible for execution, the data availability layer ( B² Hub ) responsible for storing data, and B² Nodes performing off-chain verification, while the final settlement layer is the Bitcoin mainnet. B² Hub, as the first third-party DA layer for Bitcoin's modular design, is expected to become the off-chain verification layer and DA layer for multiple Bitcoin Layer 2 solutions.

Conclusion

Modular blockchain technology represents a more "soulful" approach to pluggable product design, providing a solid foundation for building the next generation of decentralized applications. From the Ethereum ecosystem to the Bitcoin ecosystem, modular technology has already made its mark across various tracks in the cryptocurrency industry. In the future, modular blockchain will continue to drive technological advancement, laying the groundwork for a more open, flexible, and secure digital world.