[Infrastructure] Understanding the Strengths of Modular Structures through Mantle

April 22, 2024

Disclaimer: This post is for informational purposes only, and the author is not liable for the consequences arising from any investment or legal decision based on the information contained in this post. Nothing contained in this post suggests or recommends investing in any particular asset. Making any decisions based only on the information or content of this post is NOT advised.

Blockchain technology has been working tirelessly to process as many transactions as possible in a unit of time without compromising (or redefining) the fundamental value of trustlessness. The methods to achieve this have evolved over the past 3–4 years into two distinct approaches: monolithic and modular.

• Monolithic: A structure in which a single network is responsible for the functioning of the blockchain.
• Modular: A structure that divides blockchain functionalities into consensus, execution, settlement, data availability, and more, solved by multiple networks.

Leading the monolithic camp are Solana, Aptos, and Sui, while Ethereum stands out as the flagship for modularity. As each chain operates under different trust assumptions, making direct comparisons is challenging. Nevertheless, as of 2024, all have achieved significant scalability. For instance, Aptos demonstrated a TPS of 30K during a performance test on Previewnet in December last year, while Ethereum boasts 48 active rollups according to L2BEAT, enabling it to handle a vast number of transactions.

As both camps have achieved high scalability, one might question whether structure matters. Thus, this post explores the forward-looking advantages the modular architecture offers.

In 2024, fast transaction speed is no longer considered a strength for blockchains; rather, they are seen as a basic qualification. Investment in Layer 1 has been almost non-existent, with a heightened focus on Layer 2(L2) and interoperability indicating this shift. The current buzz around blockchain technology centers on enhancing user experience. Examples include enabling fee payments, ensuring secure storage and recovery of private keys, or the feature to separate and delegate account execution rights in a simple and consistent manner. However, executing upgrades in line with the rapid development of technology can only be burdensome when considering the relevant risks.

The strengths of the modular structure lie in addressing this challenge. By separating blockchain functions and handling them across multiple networks, the impact of changes is contained and development can occur in parallel. This is why Ethereum can maintain its position at the forefront of technology trends without needing frequent upgrades.

In this article, we'll showcase the power of modularity through the example of Mantle's Tectonic upgrade.