The following is a guest post by Erick de Moura, co-founder of Cartesi.
Despite more than a decade of evolution, traditional blockchains continue to struggle with the so-called “blockchain trilemma”: balancing decentralization, security, and scalability. As blockchains get bigger – with more users, more dApps, and more activity and transactions – the demands on the underlying infrastructure grow.
As adoption continues, the network’s ability to meet growing demand decreases, resulting in network congestion, higher gas prices, and slower processing times – all far removed from the better internet we were promised.
Those of us working in the blockchain space clearly see the value and potential of Web3, but we still don’t all agree on the best way to architect it. Countless solutions have been proposed, but few have taken hold.
But over the past 12 months, the blockchain space has increasingly trended towards a new paradigm: modularity. Whereas earlier monolithic chains like Ethereum and Solana were built using a predefined set of design and infrastructure choices, modular infrastructure separates critical blockchain functions into separate modules that can be combined to build even more powerful applications.
In this article, we explain how modularization is not just a technical upgrade, but represents a strategic rethinking of blockchain infrastructure, promising a more robust framework for future applications.
Exploring modularity theory
Ethereum’s move to a rollup-centric roadmap was arguably the first big shift towards a modular framework by outsourcing execution to layer 2s like zkSync and Optimism. This was an admission that a monolithic blockchain simply cannot optimize all layers of its operations beyond a certain threshold, leaving critical operations largely disconnected from the main chain.
However, extending the computational power of the blockchain using Layer 2 (whose main purpose is to offload transactions from Layer 1) does not achieve much: traffic is shifted, but not entirely removed.
Imagine a ferry with too many passengers and in danger of capsizing: some of the passengers could be transferred to tugboats attached to the larger ship to lighten the load, but that doesn’t do much to solve the underlying problem.
Blockchain modularity is essentially an extension of this idea: rather than having a single blockchain handling all operational aspects (currently the primary focus is on execution, settlement, data availability and consensus), the paper proposes that these functions should be completely separated into differentiated, specialized layers that can function independently and, when combined, can address even more diverse operations.
Modularity may have only emerged as a buzzword within blockchain in the last 12 months or so, but some modular solutions have been in development for years already. The guiding principles are divide, conquer, and (most importantly) collaborate. To work, these layers must be able to be stacked back together in flexible configurations.
Developer Challenges
While that’s happening at the infrastructure level, developers responsible for actually building on-chain dApps face a different set of challenges. The reality is that the on-ramp for developers is steeper than many realize. New coding languages and unfamiliar build environments are just two of the major hurdles developers face when designing and deploying dApps.
A bigger constraint is the framework imposed by the blockchain on which developers choose to build. It is a one-size-fits-all solution; all run under the same circumstances and are subject to the same gas price fluctuations and performance limitations. Reproducibility and scalability concerns make on-chain computational environments very restrictive.
DeFi developers have a completely different set of requirements for building a dApp than game developers. One may prioritize security while the other focuses on speed. Both need to look for a blockchain with the perfect balance between scale, security, speed, and all the other aspects that are important to their application. This selection process requires navigating trade-offs and compromises.
This limits the parameters and design space that developers can build upon, preventing complex dApp development and stifling innovation.
Modularity removes this hurdle, instead empowering developers to compose the blockchain stack that works best for them, integrating different modular protocols at each layer to meet the specific needs of the application they are developing.
Run: Developer Gateway
The execution layer is the easiest gateway for developers to start experimenting and building within the modular framework. As technology advances, it should become easier and more convenient for developers to build and deploy dApps on-chain. Designing tools and platforms that enable this ease of use is key for this framework to see widespread adoption among developers.
Bringing familiar tools into a new coding environment that is tried, tested and trusted can free developers from the limitations and idiosyncrasies imposed by blockchain – namely, the lack of a productive and stable development environment.
Alternate Virtual Machines (alt-VMs) will bring a diversity of operating systems to blockchain infrastructure, better providing the conditions necessary to build complex, scalable applications. This will enable a richer, more versatile development environment that has never existed on-chain before. This is a major leap in the advancement of blockchain.
Rollup also provides the ability for developers to build and operate their own rollup chains, or “app chains”. Similar to an app having a dedicated server, an app chain shields dApps built on top of it from the computational demands of the broader network, making for a smoother and more efficient experience.
Through the execution layer, developers can build and deploy dApps with the least amount of friction possible. An effective solution should be convenient and abstract away much of the complexity facing most blockchain developers today.
The benefits here are manifold: a modular framework allows for greater customizability, giving developers flexibility and choice when building their dApps, computation is blockchain agnostic so dApps are more portable and interoperable across chains, and having a proper execution layer means developers can build in a familiar, secure and robust environment.
Modular Maps: Building the Optimal Stack
Our solution is powerful, but it is still only one module, or one tile in a much larger mosaic. Modularization is collaborative, and every solution plays an important role. This is in stark contrast to the zero-sum competitive environment that many of us are accustomed to in the blockchain space.
The move to modularization has greatly fostered innovation and experimentation: by decoupling each layer of the blockchain stack, teams are able to focus on delivering hyper-centralized solutions at the infrastructure level while increasing versatility at the application level, all of which ultimately benefits end users.
After all, interoperability is at the heart of modularity theory. Real-world applications cannot exist in isolation. They depend on rich and complex runtime environments that are always built on top of modern operating systems. And that’s exactly what we designed for.
In its simplest configuration, Rollup can interact with Ethereum acting as the sole data availability, consensus, and settlement layer. Developers building ambitious applications that require more flexible or custom configurations can leverage integrations with Celestia and EigenDA for data availability, Espresso Systems for sequencing, and deployment to Ethereum, Optimism, or Arbitrum.
As more protocols are integrated at all levels of the stack, developers will have many more choices in how they configure the underlying infrastructure for their dApps. As the collaborative ecosystem of protocols and solutions expands, so will the development of more complex and innovative dApps for end users.
A future greater than the sum of its parts
It is certainly faster to discuss and start a new modular blockchain project than the actual development and coding required to make this vision a reality. While our solutions have been in development over the past six years, the entire modular ecosystem is still in its infancy. Over time, modular infrastructure and tooling will become increasingly streamlined, enabling developers to tackle Web3 technologies without the steep learning curves and competitive paradigms that currently act as barriers to progress.
It will take time, investment, and sustained effort for the individual pieces to come together to create a whole greater than the sum of its parts. Getting there will not only address the inherent limitations of traditional blockchain architecture, but also lay the foundation for a more dynamic and collaborative future for blockchain development.
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