On July 17, Monad announced on the X platform that it will soon launch its EVM-compatible testnet, and plans to establish a partnership with the digital wallet platform Backpack on the first day of the testnet launch. This cooperation heralds Monad's further expansion in technology integration and ecosystem construction.
Monad Labs completed a $19 million seed round of financing in February 2023, led by Dragonfly Capital, and completed a $225 million financing round led by Paradigm in April 2024.
This capital injection not only accelerates Monad’s technical development, but also provides solid financial support for its upcoming testnet.
The partnership is eye-catching. Can Monad and Backpack create sparks of value?
The cooperation between Monad and Backpack on the first day of the testnet launch marks an important combination of the two projects at the technical and market levels.
This cooperation first strengthens technical synergy. By integrating the Backpack wallet into Monad's EVM-compatible blockchain, it not only expands Monad's user base, but also provides Backpack users with a new high-performance platform for testing smart contracts and applications. This helps both platforms to provide better services while collecting valuable user feedback to optimize network performance and user experience.
In terms of market impact, this cooperation enhances the brand visibility and market competitiveness of both parties. By referring users to each other, both parties have the opportunity to expand their user base and market share. In addition, incentives such as airdrops and transaction discounts may further promote user activity and participation, accelerating the growth and expansion of the ecosystem.
As a highly anticipated L1 project, Monad can achieve superb technical integration performance
In the blockchain industry, EVM (Ethereum Virtual Machine) has become a recognized standard virtual machine, supporting many innovative projects such as Curve, Uniswap, and Maker. However, the limitations of EVM—such as its reliance on the Solidity language and the way transactions are processed sequentially—have gradually become apparent, giving rise to the exploration of alternative virtual machine technologies. In this exploration, Monad stands out from many AltVM projects with its MonadDb, which can handle 10,000 transactions per second and its rich community culture. We often think of Layer 1 as a city and its core operators as a government that provides services. Whether a project can attract developer investment and user participation depends largely on its cultural atmosphere and service efficiency.
MEV is an inherent feature of blockchain design. Monad explores the possibility of building a powerful MEVA infrastructure under a high-performance, delayed execution blockchain framework. Drawing on the experience of Ethereum and Solana, Monad considered the close integration with the underlying mechanism of the blockchain, especially the consensus execution stage, when designing MEVA.
Parallel execution technology is the key to Monad's high throughput. This technology allows the system to process multiple transactions simultaneously, rather than the traditional sequential execution method. Although Monad's blocks maintain a linear order similar to Ethereum, by adopting an optimistic parallel execution strategy, it can greatly increase the processing speed while ensuring the correctness of transactions.
In addition, Monad uses the parallel database MonadDb, which is another key factor in the parallel execution technology to effectively improve the performance of blockchain. The traditional sequential database is like a single-lane toll booth, while MonadDb allows multiple lanes to pass at the same time, greatly improving the efficiency of data processing.
Monad also introduces asynchronous execution and consensus mechanisms, separating execution from consensus processes, which allows the entire system to use resources more efficiently, further improving performance. This design concept originates from standard practices in traditional computer science, but it is the first time it has been applied in blockchain technology.
As a comprehensive Web3 financial services platform, Backpack will provide high-quality services to Monad
Backpack is a comprehensive digital asset management platform that provides multi-chain wallet services and centralized exchange (CEX) functions, mainly serving multiple jurisdictions around the world. It not only supports mainstream blockchain networks such as Solana and Ethereum, but also focuses on providing highly secure asset management solutions. Backpack wallet is favored by users for its non-custodial characteristics and emphasis on user asset security, especially in protecting non-fungible tokens (NFTs). Its unique "collection lock" mechanism can automatically reject abnormal transaction requests, providing additional security for users' precious collections.
Backpack is not just a tool for storing and trading cryptocurrencies, it also actively plays the role of a platform for decentralized applications (DApps), especially through its xNFT function, users can access and download hundreds of decentralized applications. This enables Backpack to enhance the user's interactive experience and application usability in addition to providing basic wallet services.
Technically, Backpack uses multi-party computation (MPC) technology, which is used in cryptocurrency wallets to ensure the security of transactions and the confidentiality of funds. This technical application of Backpack significantly improves users' sense of security when executing transactions, because even in a multi-party environment, the user's private key information will not be completely exposed.
Backpack's journey to the market has included extremely high ups and downs. In 2022, it was launched by Coral, the developer of the Solana development framework Anchor, and successfully completed a $20 million financing led by FTX Ventures and Jump Crypto. However, with the FTX incident, Backpack also faced the dilemma of frozen funds. Despite this, it successfully launched Mad Lads, a very popular xNFT series in the Solana ecosystem, and became the focus of the market.
