PART I. WHAT IS MODULAR BLOCKCHAIN?
Let’s start with the basic question: What is a modular blockchain?
Most traditional blockchains like Bitcoin or Ethereum operate on a monolithic blockchain model – meaning that all the functions required for a blockchain (consensus, transaction execution, and data storage) are in the same system. This makes them secure and reliable, but also causes major limitations in terms of scalability.
In contrast, modular blockchains separate these functions into separate parts, each of which can operate independently or in coordination with each other. This brings many benefits: it increases scalability, reduces the load on each layer, and provides flexibility in system design. You can imagine modular blockchains as a Lego set – each block is separate, but when put together, they form a powerful and comprehensive ecosystem.
