Source: Gryphsis Academy
TL;DR
Single Blockchain Known for its comprehensiveness, it independently undertakes all aspects of the network, from data storage to transaction verification and so on. The Modular blockchain can provide performance support and smooth user experience on specific functions by separating the different functions of the blockchain into independent modules, solving the "impossible" problem to a certain extent. "Triangle" problem.
EthereumAs the first blockchain platform to support smart contracts, it provides fertile ground for modular design. With the development of blockchain technology, Bitcoin Ecology has also begun to explore the possibility of modularization, adding new modules to achieve more advanced functions, such as improved privacy protection and more efficient transactions. Processed or enhanced smart contract functionality.
Modular technology represents a more "soul-oriented" pluggable product idea, and more flexible and customizable areas will appear in the future. Blockchain solutions, various services and functions can be plugged in and out as easily as Lego bricks. This flexibility enables developers to quickly build and deploy blockchain solutions based on the needs of specific application scenarios.
1. What is a modular blockchain
source: Celestia.org
When we discuss When modularizing a blockchain, you must first understand the concept of Monolithic Blockchain. Monolithic chains, such as Bitcoin, Ethereum, etc., are known for their comprehensiveness and independently undertake all aspects of the network, from data storage to transaction verification to smart contract execution. In this process, the monomer chain plays the role of a generalist, covering all aspects.
Taking Ethereum as an example, a mature single blockchain can generally be roughly divided into four architectures:
The following figure is passed on the block On-chain accounting is likened to a ball game, and the role of each layer of architecture is explained in detail:
Through this analogy, we can more clearly understand how the various architectures of the blockchain work together. A single blockchain concentrates all functions on the same chain, while Modular Blockchain is a new type of blockchain architecture that combines blockchain The system is broken down into multiple specialized components or layers, each responsible for handling specific tasks such as consensus, data availability, execution and settlement.
Modular blockchain is like a group of experts, focusing on in-depth mining and technological innovation in their respective fields. This focus enables modular blockchains to deliver superior performance and user experience on specific functions, for example, they can provide faster transaction processing speeds at lower costs.
In terms of node architecture, monolithic chains rely on full nodes, which must download and process a copy of the entire blockchain's data. This not only places higher demands on storage and computing resources, but also limits the expansion speed of the network. In contrast, modular blockchains adopt a light node design and only need to process block header information, thus significantly improving transaction speed and network efficiency.
A significant advantage of modular blockchain is its flexibility and collaboration. They are able to outsource non-core functions to other experts, creating a synergy that leads to significant improvements in overall performance. This design philosophy is similar to Lego bricks, allowing developers to freely combine different modules according to project needs to create diverse solutions.
Although monolithic chains have advantages in global control, security, and stability, they also face challenges in scalability, difficulty in upgrading, and adapting to new needs. Modular blockchains stand out for their high degree of flexibility and customizability, simplifying the creation and optimization of new blockchains.
However, modular blockchains also face their own unique challenges. Its complex architecture increases developers' workload in design, development and maintenance. As an emerging technology, modular blockchain has not yet undergone comprehensive security testing and the test of market fluctuations, and its long-term stability and security still need to be further verified.
2. Why is modular blockchain needed?
Why has modular blockchain technology received widespread attention and been predicted as a “future trend”? This is closely related to the famous "Impossible Triangle" theory in the blockchain field.
Source:chainlink
The "Impossible Triangle" of blockchain refers to the difficulty for a blockchain network to achieve security and decentralization at the same time. The three core attributes of scalability and scalability have reached the optimal state.
Scalability focuses on the network's ability to handle large numbers of transactions and its ability to grow as users and transaction volume grow The ability to maintain efficient and low-cost operations at all times. Typically measured by TPS (transactions per second) and latency (how long it takes for a transaction to be confirmed).
SecurityInvolves the cost and difficulty of protecting a blockchain network from attacks. For example, Bitcoin's POW mechanism requires the attacker to control more than 51% of the entire network's computing power, while Ethereum's POS mechanism requires more than ⅓ of the nodes to collude.
Decentralization describes that the operation of the network does not rely on a single central node, but is distributed across many nodes. The more nodes, the geographical The wider the distribution, the more decentralized the network is.
The core point of the "Impossible Triangle" is that it is difficult for a blockchain system to optimize all three characteristics. For example: Among many public chains, Bitcoin and Ethereum perform outstandingly in terms of decentralization and security due to their wide node distribution and sufficient number of nodes.
However, they sacrifice some scalability, resulting in slower transaction speeds and higher transaction fees: Bitcoin’s block time is about 10 minutes, Ethereum’s TPS is about 13, and in transactions When volumes surge, Ethereum transaction fees can reach hundreds of dollars.
It is against this background that modular blockchain technology emerged. It solves the problems of traditional public chains in terms of scalability and transaction costs by allocating different functions to specialized modules. challenges. For example, Bitcoin’s Lightning Network and Ethereum’s Rollup technology are both embodiments of modular thinking.
The advantage of modular blockchain is its layered architecture, which allows each layer to be optimized for specific needs. The data layer can focus on data storage and verification, while the execution layer can handle smart contract logic. This separation not only improves performance and efficiency, but also promotes interoperability between different blockchains, providing a foundation for building an open and connected ecosystem.
To sum up, modular blockchain technology provides a new way to solve the limitations of traditional public chains. It achieves higher scalability and lower transaction costs on the basis of maintaining decentralization and security, which has far-reaching significance for the widespread application and long-term development of blockchain technology.
3. Modular blockchain track-project analysis
Modular blockchain can be divided into different types according to its architectural characteristics. Among these types, the data availability layer and consensus layer are often designed as a unified whole due to their close interdependence. This is because when a node receives transaction data, it usually also determines the order of the transaction, which is the core of blockchain security and immutability.
Based on this design principle, we can understand different projects of modular blockchain from three aspects: execution layer, data availability layer and consensus layer, and settlement layer.
3.1 Execution Layer
Layer 2 technology, as a zone The extension of the execution layer in the blockchain architecture is a manifestation of the concept of modular blockchain. It is committed to improving the scalability of the main chain through off-chain networks, systems or technologies built on the underlying blockchain.
Layer 2 solutions allow for faster, more cost-effective transaction processing while maintaining the security and decentralized nature of the underlying blockchain. According to the dune dashboard produced by @0xning, it can be seen that the proportion of gas consumed by Layer 2 verification and clearing on the Ethereum ecosystem is less than 10% on average, which greatly saves users’ transaction costs.
source: https://dune.com/0xning/ethereum-gas-war
Rollup technology is currently the most mainstream solution for Layer 2, and its core concept It is "execution off the chain, verification on the chain", performing calculations and other work off the chain, and then uploading the calldata data back to the main network.
Off-chain execution
In the Rollup model, transactions are executed off-chain, and the underlying blockchain is only responsible for verifying the transaction proof in the smart contract. And store the original transaction data. This design significantly reduces the computational burden on the main chain and reduces storage requirements, allowing for more efficient transaction processing.
In order to further reduce costs, Rollup uses transaction packaging technology. This can be likened to consolidating goods in logistics, where sending each item individually would incur high shipping costs. Rollup technology significantly reduces the cost of each transaction by packaging multiple transactions together and requiring only one "transportation".
On-chain verification
On-chain verification is key to Layer 2 network security. Layer 2 networks must provide cryptographic proofs to resolve potential disagreements on the underlying blockchain. Currently, the two mainstream proof mechanisms are error proof and validity proof, which support Optimistic Rollups and ZK Rollups respectively.
Proof of error in Optimistic Rollups
Optimistic Rollups adopt an optimistic assumption that all transactions are valid by default unless there is clear evidence that There is an error. This model relies on error proofs (fraud proofs) during the challenge period. Any network participant can submit proofs to challenge the status of the smart contract, ensuring the fairness and transparency of the network.
According to L2BEAT data, there are currently 16 Layer 2s using the Optimistic Rollups mechanism, such as: Arbitrum, OP, Base, Blast, etc.
Source: l2beat.com
Proof of effectiveness of ZK Rollups
Unlike Optimistic Rollups, ZK Rollups A more cautious approach is adopted, which requires all transactions to be proven valid before being accepted. This proof mechanism is similar to a verification process that ensures that every transaction and calculation in the Layer 2 network is accurate.
In short, validity proof is the cornerstone of ZK-Rollups, which requires each batch of transactions to be accompanied by a corresponding proof, thereby ensuring that the smart contract on the underlying blockchain can verify and approve state changes. . For validating nodes, ZK Rollups provides a zero-error settlement mechanism because each transaction must pass strict validity verification.
According to L2BEAT data, there are currently 11 Layer 2s using the ZK Rollups mechanism, such as: Linea, Starknet, zkSync, etc.
Source: l2beat.com
3.2 Data availability layer and consensus layer
3.2.1Celestia
As a pioneer in the field of modular blockchain, Celestia is essentially a data availability layer, providing a solid foundation for the development of dApps and Rollups. By deploying on Celestia's data availability layer and consensus layer, application developers can focus on optimizing execution logic and leave the complexity of data availability and consensus mechanisms to Celestia.
Celestia’s architectural design provides diverse solutions for modular expansion. Its architecture mainly includes the following three types:
< li>Sovereign Rollup: Celestia provides the data availability layer and consensus layer, while the settlement layer and execution layer are independently implemented by their respective sovereign chains.
Settlement Rollup (such as Cevmos project): Based on the DA and consensus layer provided by Celestia, Cevmos provides settlement layer services, while the application chain Assume an executive level role.
Celestium: The data availability layer is handled by Celestia, the consensus layer and settlement layer rely on the powerful network of Ethereum, and the application chain continues to focus on execution layer.
Celestia uses a number of innovative technology, significantly reducing the cost of data storage and optimizing storage efficiency.
Erasure coding technology
One of Celestia’s innovations is the application of erasure codes. In the paper "Data Availability Sampling and Fraud Proof" co-authored by Mustafa Albasan (one of the founders of Celestia) and Vitalik Buterin, a new architectural idea is proposed, that is, full nodes are responsible for the production of blocks, while light nodes Responsible for the verification of blocks. Erasure coding technology introduces redundancy in the data transmission process to ensure that the original data blocks can be fully restored even in the event of up to 50% data loss.
This mechanism means that in order to ensure 100% availability of block data, block producers only need to publish 50% of the block data to the network. If there is a malicious producer trying to tamper with 1% of the block data, they actually need to tamper with the entire 50% of the data, which greatly increases the perpetrator's cost of doing evil.
Data Availability Sampling
Celestia solves the scalability problem of blockchain by introducing Data Availability Sampling (DAS) technology. The workflow of DAS includes the following key steps:
Random sampling: Light nodes execute on block data Multiple rounds of random sampling, requesting only a small portion of the block data each time.
Gradually increase confidence: As a light node completes more rounds of sampling, its confidence in the availability of data gradually increases.
Confidence threshold reached: Once a light node reaches a preset confidence level (such as 99%) through sampling, it considers the data of the block It is available.
This mechanism allows light nodes to verify the availability of block data without downloading the entire block data, ensuring the integrity and integrity of the blockchain data. Availability. Celestia's focus on providing data availability rather than execution status results in improved block productivity, with more space per block able to accommodate more sampled data, resulting in significantly higher TPS (transactions per second).
3.2.2 EigenLayer
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EigenDA is a secure, high-throughput and decentralized data availability service and is the first Active Verification Service (AVS) launched on EigenLayer. AVS can be understood as a node operation and maintenance provider. It is a selected part of the thousands of node operation and maintenance providers on Ethereum. On the basis of its own job (responsible for Ethereum consensus verification), it takes on some additional private work (services include rollup and other networks for consensus verification requirements), thereby obtaining additional income.
With the increase in the number of re-pledged Ethereums and more AVS joining the EigenLayer ecosystem in the future, Rollups can obtain lower transaction costs and higher security composability in the EigenLayer ecosystem sex.
EigenLayer is a re-pledge protocol based on Ethereum. It uses the pledgers of the Ethereum consensus layer as verifiers, that is, it uses part of the security of Ethereum to avoid centralized service providers or self-owned agents. The trust risk of the currency thus lowers the development threshold for other project parties. At the same time, it also strengthens the trust network of Ethereum and increases the value and influence of Ethereum.
In terms of architecture, EigenDA uses ZK technology to verify the status data submitted by Layer 2, and the EigenDA network, which ensures consensus security by Restaking ETH, is responsible for finality. Finally, Layer 2’s status data is submitted and saved to the Ethereum main network. . Therefore, EigenDA acts as a subcontractor for the verification and finality aspects of the Ethereum mainnet’s DA service, rather than a competitor like Celestia.
3.2.3 Avail
< p>Avail is a modular blockchain project announced by the Polygon team in June 2023. It was split from Polygon in March this year and operates as an independent entity. Avail is currently running on the testnet and has just completed a $43 million Series A round of financing, co-led by Dragonfly and Cyber Fund.
Avail's core architecture mainly consists of three parts: Avail DA, Avail Nexus, and Avail Fusion. Avail DA is a modular data availability layer that, like Celestia, provides DA services for each blockchain. Avail Nexus is a set of standardized cross-chain messaging protocols, similar to Cosmos's IBC protocol, providing equal interoperability between various cross-chains. Avail Fusion introduces multi-asset pledged POS consensus with the goal of providing secure consensus guarantee for the entire Avail network.
In terms of technology, Avail DA uses Kate polynomial commitment to avoid fraud proofs, does not need to assume that most nodes are honest, and does not rely on full nodes to obtain data availability. This is different from the architecture of Celestia, which is based on fraud proof, so there is an essential difference between the two at the technical level.
With the emergence of modular data availability blockchain projects such as Celestia and Avail, the modular DA War will become more and more intense, and the functionality of Ethereum as a DA layer will also be diverted. The future is likely to see a competitive landscape of “one super, many strong”.
3.3 Settlement Layer
3.3.1 Dymension
Dymension is a modular blockchain platform based on Cosmos, which provides a simple framework for the development of RollApp through built-in scalability aggregation technology. In Dymension's architecture, developers can focus on the implementation of business logic, using the Rollup Development Kit (RDK) and a dedicated settlement layer to quickly deploy Rollup for specific applications.
Dymension’s architecture consists of two core components: RollApp and Dymension Hub.
RollApp is a fusion of Rollup and App, a high-performance modular blockchain on Dymension dedicated to specific applications. RollApp can be presented in many forms, including but not limited to dedicated Layer 2 solutions for decentralized applications such as DeFi platforms, Web3 games, and NFT trading markets.
In RollApp, the sequencer plays a key role and is responsible for the verification, sorting and processing of local transactions. Once block packaging is complete, this data will be delivered to peer full nodes and published on-chain to a data availability network of RollApp’s choice, such as Celestia. After getting a response from Celestia, the sequencer sends its state root to the Dymension Hub for consensus formation and settlement.
Dymension Hub, as the center of the entire ecosystem, assumes the functions of consensus layer and settlement layer. It receives the state root from RollApp and provides final transaction confirmation and settlement services to RollApps.
Through this design, Rollup can hand over the tasks of consensus and settlement to Dymension Hub, and the task of data storage and verification to DA networks such as Celestia. In this way, Rollup can share the economic security guarantees of the two networks while focusing its efforts on improving the execution efficiency and user experience of the application itself.
3.3.2 Cevmos
< p>Cevmos, whose name combines Celestia, EVMos and CosmOS, aims to provide a settlement layer for EVM-compatible rollups.
Since Cevmos itself is a rollup, all rollups built on it are collectively called settlement rollups. Each rollup implements the redeployment of existing rollup contracts and applications on Ethereum through a minimal two-way trust bridge with Cevmos rollup, reducing migration workload. Rollups on Cevmos publish data to Cevmos, which then batches the data and publishes it to Celestia. Just like Ethereum, Cevmos will perform proof-of-rollups as a settlement layer.
4. Modular blockchain in the Bitcoin ecosystem
With the wealth creation effect of the Ordinals protocol and the approval of the Bitcoin ETF, multiple favorable factors have converged , injecting new vitality into the Bitcoin ecosystem. The market's attention was quickly drawn to the Bitcoin ecosystem, and funds from institutional investors also poured into this area, demonstrating confidence and expectations for the future development of the Bitcoin ecosystem.
In this context, Bitcoin Layer 2 technology has shown a prosperous scene, and many technical solutions have emerged, forming a diversified and dynamic technology ecosystem. Various innovative solutions have been launched one after another to jointly promote the expansion and optimization of the Bitcoin network.
Although the industry has not yet reached a unified consensus on the precise definition of Bitcoin Layer 2, this article will draw on the concept of Ethereum’s modular blockchain and explore the construction of Bitcoin Layer 2 from a modular perspective. Possibilities and methods.
4.1 Why does Bitcoin need modularity?
The Ethereum network is known for its Turing-complete smart contract capabilities, which can store and verify historical states to support complex decentralized applications (DApps). In comparison, the Bitcoin network is a stateless, non-smart contract network, and its imperfect system design mainly stems from two aspects:
1. Limitations of the UTXO account system
In the blockchain world, there are two main record keeping methods: the account/balance model and the UTXO model. The UTXO model adopted by Bitcoin is in sharp contrast to the account/balance model adopted by Ethereum.
In the Bitcoin system, although users see the account balance in the wallet, in fact, the Bitcoin system designed by Satoshi Nakamoto does not include the concept of balance. The so-called "Bitcoin balance" is actually a concept derived from UTXO by the wallet application. UTXO represents unspent transaction output, which is the core of Bitcoin transaction generation and verification.
Each transaction in Bitcoin is composed of inputs and outputs. Each transaction consumes (spend) one or more inputs and generates new outputs. These newly generated outputs then become new UTXOs, waiting to be consumed by future transactions.
As a minimalist technology architecture for asset transfer and settlement, the UTXO model is difficult to expand to support complex functions such as smart contracts.
2. Non-Turing complete scripting language
Bitcoin’s scripting language does not support all types of calculations because of the lack of loops and conditional control statements , resulting in it not being Turing complete. Although this feature helps reduce hacker attacks and improve network security, it also limits Bitcoin's ability to execute complex smart contracts.
Because of the imperfect design of the Bitcoin system, for more complex functions, it needs to rely on external modular expansion. In this regard, Bitcoin's need for modularity is undoubtedly more urgent than that of Ethereum. Functions such as the execution layer, data availability layer, consensus layer, and cross-chain interoperability layer in its ecosystem all need to be encapsulated and expanded in a modular manner.
4.2 Modular project analysis of the Bitcoin ecosystem
4.2.1 Execution layer-Bitcoin Layer 2
Merlin
Currently in the Bitcoin second-layer track, Merlin Chain has the highest TVL, reaching billions of dollars. It can be said to be the most attention-grabbing project in the Bitcoin ecosystem. As a Bitcoin Layer 2 network, Merlin Chain supports a variety of native Bitcoin assets and is also compatible with EVM, demonstrating its dual consideration of the Bitcoin ecosystem and the Ethereum ecosystem.
Source: https://devillama.com/chain/Merlin
Merlin’s functions revolve around the ZK-Rollup network, decentralized oracle network and on-chain defense Fraud.
ZK-Rollup Network
The core of ZK-Rollups is the use of zero-knowledge proofs. Zero-knowledge proof is an encryption method in cryptography that allows one party (the prover) to prove to another party (the verifier) that a certain statement is correct without revealing any information other than proving that the statement is correct.
Merlin Chain processes and calculates transactions off-chain, avoiding the high transaction fees and network congestion of the Bitcoin network. At the same time, ZK-rollup can compress multiple transaction proofs into batches. The Bitcoin main chain only needs to verify and package a single proof of multiple transactions, which greatly reduces the workload of the main chain and improves transaction efficiency.
Decentralized Oracle Network
Merlin’s decentralized oracle network plays the role of DAC (Data Availability Committee) to check and ensure The sequencer faithfully publishes the complete DA data off-chain. The decentralization of the oracle network is that it takes the form of POS. Anyone can run an oracle node as long as they stake enough assets. This pledge mechanism is very flexible and supports assets such as BTC and MERL, as well as agency pledge similar to Lido.
On-chain fraud prevention
Merlin introduces the idea of BitVM and similarly adopts the "optimistic ZK-Rollup" mechanism, which can be simply understood as defaulting to all ZK Proof is trustworthy and will only punish the operator when an error occurs. Because the verification is performed on the Bitcoin mainnet, on the Bitcoin chain, ZK Proof cannot be completely verified due to technical limitations, and a certain step of the calculation process of ZK Proof can only be verified under special circumstances. Therefore, people can only choose to point out that there is an error in a certain calculation step of ZKP during the off-chain verification process, and challenge it through fraud proof.
4.2.2 Data Availability Layer & Consensus Layer
B² Network
B² Network adopts a modular design, with the Rollup layer (ZK-Rollup) responsible for execution and the data availability layer (B² Hub) responsible Data is stored, B² Nodes perform off-chain verification, and the final settlement layer is the Bitcoin mainnet.
The ZK-Rollup layer of B² Network uses the zkEVM solution, which is responsible for executing user transactions within the second-layer network and outputting relevant certificates. The Rollup layer is responsible for submitting and processing user transactions, while the DA layer is responsible for storing a copy of the aggregated data and verifying the relevant zero-knowledge proofs.
Source: https://docs.bsquared.network
B² Hub is a DA network built off-chain and supports data sampling function. Considered a pioneer in modular Bitcoin scaling solutions. B² Hub borrows design ideas from Celestia and introduces data sampling and erasure coding technology to ensure that new data can be quickly distributed to many external nodes and minimize the risk of data withholding. In addition, the Committer in B² Hub uploads the storage index and data hash of DA data to the Bitcoin chain for public access.
Source: https://blog.bsquared.network
According to the future planning of B² Network, the EVM-compatible B² Hub is expected to become a multi-bit The off-chain verification layer and DA layer of Coin Layer 2 form a functional expansion layer under the Bitcoin chain. Given that Bitcoin itself cannot support many application scenarios, the method of building functional extension layers off-chain will become an increasingly common phenomenon in the Layer 2 ecosystem.
As the first Bitcoin modular third-party DA layer, B² Hub can help other Bitcoin Layer 2 to use the Bitcoin main chain as the final settlement layer and inherit the security of Bitcoin, which is beneficial to Promote the expansion of the Bitcoin network and enhance the diversity of its applications.
5. Summary
The slogan "Modular is the future" is gradually turning from an idea into a reality. Modular blockchain technology, with its flexibility and scalability, provides a solid foundation for building the next generation of decentralized applications. This technology allows developers to select and combine different modules based on specific needs to create more efficient, secure and easy-to-maintain blockchain solutions.
The rise of modular blockchain represents a more "soul-oriented" pluggable product idea. In this line of thinking, blockchain is no longer viewed as a closed system, but as an open, scalable platform where various services and functions can be plugged in and out as easily as Lego bricks. This flexibility enables developers to quickly build and deploy blockchain solutions based on the needs of specific application scenarios.
Origined from the Ethereum ecosystem and then emerging in the Bitcoin ecosystem, modular technology has been used in various tracks in the cryptocurrency industry.
For example, Chromia, a modular public chain using "relational database" technology, has cooperated with many games such as My Neighbor Alice and Chain of Alliance in the gaming field; in the RWA track, Chromia created Ledger Digital Asset Protocol (Ledger Digital Asset Protocol), several projects have already adopted this protocol.
In the field of AI, CARV focuses on building a modular data layer for AI and Web3 games, ensuring privacy and security during data processing by utilizing technologies such as Trusted Execution Environment (TEE) and zero-knowledge proof. safety.
As modular blockchain technology continues to mature and its application fields expand, we have reason to believe that this technology will bring more innovative possibilities to all walks of life. From the birth of Bitcoin to the widespread application of modular blockchain today, we have witnessed how blockchain technology has developed from a single digital currency application to an ecosystem that supports complex and diverse applications. In the future, modular blockchain will continue to promote technological progress and lay the foundation for building a more open, flexible and secure digital world.
References
[1]https://www.panewslab.com/zh /articledetails/qn9zbgmj.html
[2]https://www.chaincatcher.com/article/2115788
[3]https://celestia.org/what-is-celestia/
[4]https://paragraph.xyz/@tokensightxyz/eigenda-a-cryptoeconomic-analysis
[5]https://research.web3caff.com/zh/archives/14476?ref=1&ref=852
[6]https://docs.bsquared.network/architecture
[7]https:/ /web3caff.com/zh/archives/89022
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