The idea of modular blockchains is emerging as the latest narrative for enhancing network scalability and blockchain architecture.
The next phase of blockchain technology enables a structured separation of concerns to boost throughput. This can be achieved while maintaining a trustless and decentralized network. Modular blockchains can detach the intertwining of computation and verification expenses.
Earlier this month, Volt Capital performed a thorough analysis of modular blockchains. Their extensive findings fall outside the realm of this article, so we will focus on the key concepts.
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Progression of Blockchains
The researchers identified that the fundamental elements of a Layer 1 blockchain can be disaggregated. Consequently, this leads to substantial enhancements within individual layers. The ultimate aim is to establish a more scalable, composable, and decentralized architecture.
Blockchains face the scalability trilemma. This implies that sacrificing decentralization, security, or scalability can enhance the two remaining attributes. Achieving all three without compromising one proves to be a significant challenge.
Fault proofs can aid in decentralized block validation. One approach is to divide blockchain nodes into full nodes and light clients. These light clients can then depend on fault proofs produced by full nodes for validating transactions.
Furthermore, light clients are required to trust that transactions are legitimate without needing to download the complete block. This is accomplished through Optimistic rollups. It can also be done via a mathematical concept known as erasure coding.
Erasure coding enables data availability sampling, permitting light clients to confirm the data without having to download the entire block.
Validity proofs and zero-knowledge rollups can also facilitate decentralized block validation. This is done by removing certain transaction data required for state transitions.
Nonetheless, there have been concerns raised regarding security. The researchers highlighted added trust issues related to a fragmented settlement and data availability layer.
Application Chains
Blockchains are developing in a manner similar to web infrastructure. Data has transitioned from centralized server storage to distributed cloud systems. “The decentralized web is transforming from monolithic blockchains and isolated consensus layers to modular, application-specific chains that share consensus layers,” the researchers noted.
Avalanche and Polygon are two networks currently implementing application-specific chains, known as app-chains. They are referred to as subnets and supernets, and were analyzed by Altcoin Buzz earlier this week.
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The article A Brief Look at Modular Blockchains was originally published on Altcoin Buzz.
