Thinking in Modular

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18 Jan 2024

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Thinking in modular terms in the context of web3, especially in the realm of modular blockchains and interoperability, involves breaking down complex systems into smaller, independent, and interchangeable components. This approach facilitates flexibility, scalability, and collaboration across different protocols and projects. Let's explore the key aspects of thinking in a modular way and introduce a framework for evaluating modular blockchains and interoperability protocols.

Key Concepts in Modular Thinking:

1 - Independence of Modules:

Definition: Modules are self-contained units with specific functionalities.
Implication: Each module should operate independently, minimizing dependencies on other modules. This enhances flexibility and ease of upgrade.

2 - Interchangeability:

Definition: Modules should be interchangeable without affecting the overall system.
Implication: Interoperability is achieved by allowing modules from different projects or protocols to seamlessly interact. This promotes collaboration and innovation.

3 - Scalability:

Definition: The system can scale by adding or removing modules.
Implication: As the project evolves or faces increased demand, the modular architecture allows for easy expansion or contraction, ensuring adaptability to changing requirements.

4 - Standardization:

Definition: Establishing standards for interfaces between modules.
Implication: Standardized interfaces enable compatibility among different modules and projects. This fosters a common language for communication and integration.

5 - Decentralization:

Definition: Distributing functionality across various modules rather than centralizing it.
Implication: Decentralization promotes resilience, security, and censorship resistance. It also aligns with the principles of many web3 projects.

Framework for Evaluating Modular Blockchains and Interoperability Protocols:

1 - Module Compatibility:

Evaluate how well modules from different projects or blockchains can interact without conflicts or disruptions.

2 - Standardization Adherence:

Assess whether the modular system adheres to established standards, ensuring seamless integration with other systems.

3 - Upgradeability:

Examine how easily modules can be upgraded or replaced to accommodate evolving requirements or technological advancements.

4 - Security and Resilience:

Analyze the security implications of the modular design and assess the system's ability to resist attacks or failures in individual modules.

5 - Community Support:

Consider the level of community involvement and support for the modular framework, as a strong community can contribute to the development and refinement of modules.

6 - Economic Incentives:

Evaluate whether the modular design incorporates economic incentives to encourage collaboration, innovation, and the development of new modules.

7 - Documentation and Transparency:

Assess the availability and clarity of documentation, ensuring that developers can easily understand and work with the modular architecture.

Breaking down blockchain protocols:

There are a few composable layers in the modular blockchain stack:

Data availability (DA)
Sequencing or transaction ordering (TO)
Execution
Settlement

What is this Data availability (DA) ?

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Data availability (DA) is the layer that ensures that transaction data is available to users on demand. This is important because users need to be able to verify the validity of transactions and the state of the system. Without data availability, users would have to trust the execution layer or the settlement layer to provide correct information, which would compromise decentralization and security.
Data Availability (DA) Layer:

Function: Ensures that transaction data is readily available to users on demand.
Importance: Enhances decentralization and security by allowing users to independently verify transaction validity and system state.
Risk Mitigation: Reduces the need for users to trust the execution or settlement layers for accurate information.

What is this Sequencing or transaction ordering (TO) ?

Sequencing or transaction ordering (TO) is the layer that provides the order and finality of transactions. This is done by using consensus mechanisms such as proof-of-work (PoW) or proof-of-stake (PoS). Consensus is essential for preventing double-spending and ensuring that all users agree on the same history of transactions.
Sequencing or Transaction Ordering (TO) Layer:

Function: Provides the order and finality of transactions through consensus mechanisms like proof-of-work (PoW) or proof-of-stake (PoS).
Importance: Prevents double-spending and ensures a unanimous agreement on the transaction history among all users.
Consensus Mechanisms: Utilizes PoW, PoS, or other consensus algorithms to achieve agreement on transaction order and finality.

What is this Execution ?

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Execution is the layer where transactions are executed and processed. This is where users interact with applications, smart contracts, and assets. Execution can be done on different platforms, such as rollups, sidechains, or parachains. Execution layers can have different features, such as scalability, privacy, or interoperability.
Execution Layer:

Function: Executes and processes transactions, allowing users to interact with applications, smart contracts, and assets.
Platforms: Can operate on various platforms, such as rollups, sidechains, or parachains.
Features: May have different features like scalability, privacy, and interoperability.

What is Settlement ?

Settlement is the layer that serves as a hub for execution layers to verify proofs, resolve fraud disputes, and bridge between other execution layers. Settlement is optional, as some execution layers can deploy directly onto the consensus and data availability layer. However, settlement can provide additional benefits, such as security, liquidity, and composability.
Settlement Layer:

Function: Serves as a hub for execution layers to verify proofs, settle disputes, and bridge between other execution layers.
Optional: While settlement is optional, it provides additional benefits such as security, liquidity, and composability.
Integration: Can be integrated with execution layers or deployed directly onto the consensus and data availability layers.

Modular Combinations:

1 - Three-Layer Modular Stack:

Configuration: Execution layer sits atop a settlement layer, which is supported by the underlying data availability layer.
Benefits: Introduces bridging and liquidity features, enhancing the overall functionality.

2 - Two-Layer Modular Stack:

Configuration: Execution layer deploys directly onto the consensus and data availability layer.
Benefits: Offers simplicity and efficiency, streamlining the architecture without the intermediary settlement layer.

Advantages of a Modular Blockchain Stack:

Flexibility: Allows for customization based on specific needs and goals.
Scalability: The modular design accommodates scaling by adjusting or adding layers as necessary.
Efficiency: Enables more streamlined architectures, reducing complexity where it's not needed.
Innovation: Facilitates experimentation with different combinations of layers to introduce new features.

The modular blockchain stack provides a versatile framework that can be tailored to meet the diverse requirements of blockchain projects, offering a balance between security, decentralization, and efficiency.

And... Polymer the IBC Transport Hub
Polymer is building the first truly modular interoperability protocol that fully outsources the transport layer and partly outsources the state layer. As seen in the diagram below, the IBC transport layer runs on Polymer while the IBC app layer runs on the IBC enabled chain. With this design, enabling IBC on a new chain using Polymer is as easy as deploying a roll up onto Celestia. Polymer partly outsources the state layer by using zk-IBC connections to connect to newly IBC enabled chains while the zk verifier sits on chain (not shown in the diagram above for simplicity).

About PolymerPolymer believes in a multichain future connected primarily by one open-sourced, community-developed, and maintained industry standard, IBC x Polymer. Polymer is the first IBC transport hub focused on expanding IBC to all chains. The Polymer hub integrates the IBC transport layer with connected chains. At the state layer, it opens zk-IBC connections to all integrated chains. This is a trust-minimized architecture based on light client state proof verification.

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