Modular blockchain

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A modular blockchain represents an innovative architectural approach to distributed ledger technology. Unlike traditional, or “monolithic,” blockchains that handle all core tasks on a single layer, a modular blockchain separates these functions into specialized layers.

This division of labor allows for greater scalability, as individual layers can be optimized independently without creating bottlenecks for the entire network. For instance, one layer might focus solely on processing transactions (execution), while another ensures data is publicly verifiable (data availability), and yet another handles finality and dispute resolution (settlement).

This specialization not only enhances performance and throughput but also offers developers greater flexibility to choose and combine different solutions for each layer, fostering innovation and customization in decentralized application development. Modular designs aim to overcome the “blockchain trilemma” by improving scalability and customization without significantly sacrificing security or decentralization.

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