Modular blockchains
Modular Blockchain: A New Paradigm for Scalable and Decentralized Applications
Blockchain technology has been hailed as a revolutionary innovation that can transform various industries and sectors, such as finance, supply chain, healthcare, gaming, and more. However, blockchain also faces some challenges and limitations that hinder its widespread adoption and usage. One of the main challenges is scalability: how to process a large number of transactions per second without compromising security and decentralization.
Traditionally, most blockchains have adopted a monolithic architecture, where all the key functions of a blockchain are handled by a single layer. These functions include:
- Execution: The ability to run smart contracts and applications on the blockchain.
- Settlement: The ability to transfer value and assets on the blockchain.
- Consensus: The ability to reach agreement on the state of the blockchain among all participants.
- Data availability: The ability to store and access data on the blockchain.
However, this monolithic approach has some drawbacks:
- It creates trade-offs between scalability, security, and decentralization. For example, increasing the block size or reducing the block time can improve scalability but also reduce security and decentralization.
- It limits innovation and interoperability. For example, changing or upgrading one function may affect other functions or require coordination among all participants.
- It increases complexity and overhead. For example, running all functions on a single layer may consume more resources or require more synchronization.
To overcome these challenges, a new paradigm has emerged: modular blockchain. A modular blockchain is a type of blockchain that relies not on a single layer like monolithic blockchains but on an architecture divided into several independent layers. Each layer can specialize in one or a few functions while relying on other layers for other functions.
For example:
- A modular execution layer can run smart contracts and applications without worrying about consensus or data availability.
- A modular settlement layer can transfer value and assets without worrying about execution or data availability.
- A modular consensus layer can reach agreement on the state of the blockchain without worrying about execution or settlement.
- A modular data availability layer can store and access data without worrying about execution or settlement.
By using this modular approach,
- Scalability can be improved by optimizing each function separately or parallelizing them across different layers.
- Security and decentralization can be preserved by choosing suitable protocols for each function or leveraging existing networks for some functions.
- Innovation and interoperability can be enhanced by allowing different layers to communicate with each other via standardized interfaces or protocols.
- Complexity and overhead can be reduced by simplifying each function individually or outsourcing them to other layers.
Modular blockchains are not just theoretical concepts; they are already being implemented in practice by various projects in the blockchain space. Here are some examples of use cases that demonstrate how modular blockchains work:
Celestia
Celestia is a project that aims to build “the first modular blockchain network”. Celestia provides consensus and data availability as core services while enabling anyone to easily deploy their own execution layer with minimal overhead.
Celestia’s architecture consists of two main layers:
- The Celestia Node Layer: This layer provides consensus and data availability for any execution layer that connects to it. It uses Tendermint BFT as its consensus protocol and erasure coding as its data availability scheme.
- The Execution Layer: This layer runs smart contracts and applications on top of Celestia Node Layer. It can use any programming language or virtual machine as long as it implements Celestia’s interface.
By using this architecture,
Celestia enables anyone to deploy their own custom-made blockchains without having to bootstrap their own consensus network or worry about data availability. Celestia also allows different execution layers to interoperate with each other via cross-chain communication protocols such as Inter Blockchain Communication (IBC).
One potential use case for Celestia is in the area of cloud storage. Developers could use the platform to create a custom blockchain-based storage solution that provides greater security and privacy than traditional cloud storage services.
Here’s an example of how a simple blockchain-based storage solution might be implemented using Celestia:
pragma solidity ^0.4.24;
contract Storage {
mapping (bytes32 => bytes) private data;
function store(bytes32 hash, bytes memory _data) public {
data[hash] = _data;
}
function retrieve(bytes32 hash) public view returns (bytes memory) {
return data[hash];
}
}In this example, the contract defines a simple key-value store where data is stored using a SHA-256 hash as the key. The store function takes in data and the corresponding hash, and the retrieve function allows users to retrieve data using the hash.
Polygon Avail
Polygon Avail is another project that leverages modular blockchain technology to provide scalable solutions for decentralized applications 3. Polygon Avail is a data availability network that offers major advantages in scalability while improving Web3 experience for users, developers, and validators.
Polygon Avail’s architecture consists of three main components:
- The Polygon Avail Chain: This component provides data availability for any execution chain that connects to it. It uses Proof-of-Stake (PoS) as its consensus mechanism and fraud proofs as its security guarantee 5].
- The Polygon Avail Settlement Layer: This component provides an EVM-compatible blockchain for execution chains to store their data and perform dispute resolution. It uses Polygon Avail Chain as its data availability layer.
- The Execution Chains: These components run smart contracts and applications on top of Polygon Avail Settlement Layer. They can use any execution environment such as EVM, eWASM, zkEVM, etc.
By using this architecture,
Polygon Avail enables scalable and secure execution chains that can benefit from high data availability and low gas fees . Polygon Avail also allows different execution chains to interoperate with each other via cross-chain communication protocols such as IBC or Optimistic Virtual Machine (OVM) .
One potential use case for Polygon Avail is in the area of supply chain management. Developers could use the platform to create a custom blockchain-based solution for tracking goods and ensuring their authenticity.
Here’s an example of how a simple supply chain management solution might be implemented using Polygon Avail:
pragma solidity ^0.4.24;
contract SupplyChain {
struct Product {
string name;
uint256 timestamp;
address owner;
}
mapping (bytes32 => Product) private products;
function createProduct(bytes32 hash, string memory name) public {
require(products[hash].timestamp == 0, "Product already exists");
products[hash] = Product(name, now, msg.sender);
}
function getProduct(bytes32 hash) public view returns (string memory, uint256, address) {
Product storage product = products[hash];
require(product.timestamp != 0, "Product does not exist");
return (product.name, product.timestamp, product.owner);
}
function transferProduct(bytes32 hash, address newOwner) public {
Product storage product = products[hash];
require(product.timestamp != 0, "Product does not exist");
require(product.owner == msg.sender, "Not authorized to transfer ownership");
product.owner = newOwner;
}
}In this example, the contract defines a simple supply chain management system where products are tracked using a SHA-256 hash. The createProduct function allows users to create a new product and record its name, timestamp, and owner. The getProduct function allows users to retrieve information about a product using its hash. The transferProduct function allows users to transfer ownership of a product to a new owner.
Conclusion
Modular blockchains represent a significant innovation in blockchain technology, offering greater scalability, flexibility, and security compared to traditional blockchains. By breaking down a blockchain into smaller modules, each module can be designed to address specific use cases, making it easier to build decentralized applications. As the technology continues to develop, we can expect to see modular blockchains being used in a wide range of industries, from finance to healthcare.
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