Key Takeaways:
- Peek into the game-changing benefits modular blockchains offer the existing decentralized ledger infrastructure.
- Explore the diverse possibilities module blockchain development brings to the Web3 sphere.
- Learn why you should launch modular blockchain projects with our experienced developers on the go.
The blockchain space has been developing prolifically in recent years, owing to its potential to redefine digital experiences through decentralization. Despite garnering reasonable momentum worldwide, this novel technology has not reached the majority of people due to several hassles. One of them is the persisting issue of scalability, which becomes vital in driving the large-scale adoption of blockchain technology. Modular blockchain development has arisen as a plausible solution that can utilize several intricate mechanisms to resolve the issue. This blog will delve into the specifics of these blockchains and speak about how one can launch modular blockchain solutions for business.
Modular Blockchains: An Overview
A modular blockchain provides an avenue for blockchains to scale up using independent modules to process and store transaction data. This concept has been gaining traction in recent times due to its capacity to divide and assign specific tasks to specified modules, distributing how transactions are processed.
- Sidechains use separate blockchain infrastructural elements besides a main blockchain that enables the transfer of data between these networks seamlessly. These modules tend to have everything required for a blockchain as they run as separate entities with affiliation to the main network without relying upon it for infrastructure requirements.
- Layer-2 (L2) Networks use exclusive elements that lie on the main blockchain, deriving its desired facets while resolving persistent issues through its infrastructure. These can utilize on-chain or off-chain elements to improve data adaptability, scalability, security, and functionality, depending on a business’s need that is missed on the main blockchain.
- While both sidechains and layer-2 networks aspire to address the same set of problems, they do it differently, which is worth noting for whoever is aiming to launch modular blockchain projects. These networks can be used for general purposes or business-specific applications, opening up new pathways for the mainstream adoption of Web3 technologies.
Problem Points Modular Blockchain Development Solves
Modular blockchain development has picked up steam in the industry by pointing out feasible solutions for several well-researched problems in the blockchain space. Especially three of them have seen massive attention owing to their importance in the decentralized business realm, with each of them having multiple solutions.
- Execution is one of the pivotal issues that has strangled blockchain technology for a while, especially during bull runs when thousands of transactions were used to be created at any moment. Multiple modular blockchains quickening the execution process have come up, with some like Optimism, Arbitrum, zkSync, Starknet, and Polygon Hermez becoming noteworthy.
- Settlement/Consensus is another pioneering issue in the blockchain space that has traditionally relied on off-chain mechanisms, which at times were deemed unreliable. Module-based blockchains like Cosmos, Aptos, Sui, and Evmos come included with provisions to process transaction settlements and consensus requirements faster while ensuring adequate decentralization is present in the ecosystem for businesses.
- Data Availability is a crucial element for any blockchain, as it is essential for transactions to be deemed valid before being stored on the network. Blockchains like Celestia, zkPorter, EigenLayer, Polygon Avail, and StarkEx function exclusively to address such concerns by ensuring data is available for other networks for verification and validation purposes.
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Benefits of Developing Modular Blockchains
Modular blockchains usher in new pathways for resolving the diverse issues monolithic networks tend to struggle with. With a module-based architecture utilized through L1-based rollups (optimistic and zero-knowledge), validiums, and independent sovereign rollups, users can easily process and store their transaction data on-chain without worrying about its integrity and security.
- In terms of scalability, modular blockchain development opens the floodgates for the separation of concerns by offering specialized channels for execution, consensus, and data availability. Such designs also enable scaling for layer-2 networks, such as rollups and sidechains that provide processing support to layer-1 blockchains.
- In terms of flexibility and adaptability, these blockchains enable individual modules to be swapped without affecting the harmony of the whole ecosystem, ensuring adoption processes become easier. Also, this technology creates scope for sovereign chains that allow developers to set control over rules and governance on their blockchains.
- In terms of efficiency and security, module-based blockchains enable developers to dedicate exclusive tasks to specific modules, easing how resources are utilized judiciously. They also offer enhanced security for the overall blockchain network by separating the consensus and execution layers.
What Does the Future Look Like for Modular Blockchains?
While modular blockchains are touted to become a game-changing infrastructural concept in the blockchain space, they are still developing, meaning large-scale adoption is still far off. Yet, modular blockchain development is here to change how transactions are stored and processed without compromising on any element of the classical blockchain trilemma.
- With networks already built to address issues like data availability, execution, consensus, and settlement, we can expect them to garner market attention in the near future. The usage of diverse infrastructural elements makes these blockchains immensely powerful and compatible with the needs of complex Web3 business models.
- Applications based on domains like decentralized finance (DeFi) and play-to-earn (P2E) gaming are projected to benefit immensely from these blockchains. These platforms typically experience numerous transactions at any moment, opening the need for separate modules to execute different processes flawlessly.
- These networks also offer the highest degree of operational flexibility for Web3 businesses, which can mixed and matched with specific layer designs. Such provisions can promote interoperability among various networks that Web3 businesses can use to gain optimal revenues at all times.
Why Should You Launch Modular Blockchain Projects?
If you have gained interest in launching a modular blockchain after knowing its technical capabilities, chances are you can easily make it through the evolving landscape. Despite developing a modular blockchain being an ardent task, it is important to note that once built, it can prove to be a valuable business source.
With infrastructural needs in the Web3 space peaking to new maximums, tapping into modularity is something one should consider when exploring a novel blockchain model. By using modular blockchain for business purposes, you can attain incredible revenue supported by a well-groomed ecosystem of projects and users.
Conclusion
Hence, we have seen how modular blockchain development can be an invaluable tool to enhance the possibilities of blockchain technology’s utilization in diverse industries. With all the technological elements in consideration, these module-based networks can seal the missing link between Web3 and the mainstream markets. If you’re planning to launch modular blockchain solutions with advanced functionalities, now is the time to begin, and ours is the team to opt for. Our experts can make use of state-of-the-art technological stacks to build and launch your new modular blockchain with ease. Get in touch with us now to begin developing your novel module-based network!
