๐Ÿ”“Modular Blockchain

Adopting a modular blockchain strategy to provide exceptionally high transaction throughput at scale.

Monolithic vs. modular blockchainsโ€‹

Blockchains operate as replicated state machines, where nodes in a permissionless distributed network execute an ordered sequence of deterministic transactions to transition from an initial state to a shared final state. This necessitates four fundamental functions:

  • Execution: Ensuring accurate execution of transactions that update the state correctly. This involves validating and executing only valid transactions, ensuring valid state transitions.

  • Settlement: Providing an environment for execution layers to verify proofs, address fraudulent disputes, and establish connections with other execution layers.

  • Consensus: Establishing agreement on the transaction order within the network.

  • Data Availability (DA): Making transaction data accessible. It's important to note that execution, settlement, and consensus all rely on data availability.

In contrast, monolithic blockchains consolidate these four functions into a single base consensus layer. The drawback of this approach is that the consensus layer becomes burdened with multiple tasks, preventing it from being optimized for any specific function. Consequently, the monolithic framework imposes limitations on the system's throughput.

Modular blockchains, on the other hand, take a different approach. They decouple these functions, allowing them to operate independently and be optimized for specific tasks. This enables a more efficient distribution of workload and the potential to achieve greater throughput and scalability.

Application of Modular Blockchain to Layer4 Networkโ€‹

Layer4 Network adopts the modular blockchain paradigm to realize enhanced scalability, efficiency, and adaptability. Within Layer4 Network's architecture, the modular approach is harnessed to optimize the interaction between its key components, including execution, settlement, consensus, and data availability.

In Layer4 Network's implementation, the consensus and data availability functions are encapsulated in the base layer, aptly named the Consensus and DA layer. This separation allows these critical functions to be focused and streamlined, facilitating rapid transaction processing and effective agreement among network participants.

Simultaneously, settlement and execution are elevated to dedicated layers. This arrangement permits each layer to be tailored to perform its role optimally, leading to improved overall system performance and scalability.

Layer4 Network's adoption of the modular blockchain framework equips it with the agility to adapt to evolving demands, support seamless integration of new features, and maintain high throughput. This approach enables Layer4 Network to redefine how blockchain networks operate, empowering developers and users with a robust, efficient, and scalable ecosystem.

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