The overview of the Modular Blockchain ecosystem.

What is Modular Blockchain?
Modular Blockchain is a solution that breaks down the tasks of the blockchain network into individual components, then utilizes different blockchains or off-chain entities to handle tasks according to their respective strengths.
To better understand, let's first delve into the architecture of a blockchain network based on task groups.
Blockchain Architecture
The typical architecture of a blockchain network consists of four main layers: Execution, Settlement, Consensus, and Data Availability. These layers collaborate to ensure transactions are executed correctly according to the design.



This layer is responsible for computing transactions and producing results according to predefined logic. The execution results in changes to the blockchain network's state, and this new state is then processed by other layers before being finalized and becoming an immutable part of the history.
For example, in soccer, each regional country may have different regulations, but when two teams play, they must adhere to certain principles, similar to the rules in a blockchain smart contract. The Execution Layer operates the soccer match according to the established rules.
Settlement:
Settlement is the layer that verifies the validity and resolves disputes during network operation. It acts like a referee in a soccer match; if there's a disputed goal, the referee decides whether the goal is valid based on evidence.
Consensus:
The Consensus layer plays the role of agreeing on a single truth or a unique final state of the network. It is operated by various algorithms such as Proof of Work, Proof of Stake, or Proof of History. After this consensus process, the new state of the network is updated.
Returning to the soccer match example, let's say it ended with a score of 1-0. In the same time frame, other matches with different scores took place. Organizers compile results into a list like 1-0, 2-0, 3-0 for storage. However, if organizers input scores differently, like 1-0, 3-0, 2-0, it leads to information discrepancies. This is more problematic for related transactions, resulting in double spending.
The Consensus layer is a group of observers of soccer matches who confirm a single, accurate result. This final result is then passed through and permanently stored in the ledger. Those who recorded incorrect results must synchronize their records before entering a new block, ensuring all ledgers have consistent content.
Data Availability:
Data availability refers to the ability to access information across the entire chain. Data must always be available for anyone to access and use, crucial because data availability influences the determination of whether a transaction is correct or not.
Data Availability is akin to the record of a soccer match in the example above. This copy is publicly disclosed so that anyone can see which team won and the score. Without this record, disputes about the match result would occur, and ultimately, it would be impossible to determine who is right or wrong.


Ethereum has recognized this for a long time and is gradually addressing this data congestion. Two solutions have been proposed:

1. Data Availability Sampling (DAS): Each node only needs to download small data samples and then use algorithms to verify the authenticity of the data.
2. Data Availability Committees (DACs): Data is provided or verified by trusted third-party organizations stored outside the original chain.

In addition, in the update called "The Purge," the historical transaction data will be limited to 1 year for nodes. Nodes only need to download the entire history when requested.
Having understood the layers of the blockchain and their functions, you can easily distinguish between Monolithic Blockchain and Modular Blockchain. For Monolithic Blockchain, it performs all tasks within the network on its own. In contrast, with Modular Blockchain, tasks are separated and assigned to multiple processing entities.

"The Modular Blockchain ecosystem and notable projects


In addition to familiar Layer 2 Rollup solutions like Arbitrum, Optimism, zkSync, Starknet, Scroll, Linea, and Polygon, there are some new names emerging, including Berachain, Taiko, Manta, Fuel, and Sovereign.
Berachain:
Berachain is a Layer 1 blockchain developed based on the Cosmos SDK and is compatible with the Ethereum Virtual Machine (EVM). Berachain utilizes a new consensus mechanism called Proof of Liquidity, which the project introduces as having the ability to prevent Sybil Attacks. The project has successfully raised $42 million in a Series A funding round led by Polychain Capital.
(Note: The information provided is based on the given text, and it's always recommended to verify the latest developments and details from official sources for the most accurate and up-to-date information.)

Fuel Network:
As a project designed on a modular model, Fuel can take on the roles of the execution layer, settlement layer, or operate as a monolithic blockchain.

Settlement Layer Processing:

1. Dymension:
   • Dymension is designed on a modular model based on the Cosmos SDK toolkit. It enables projects to build various applications on top, each serving specific purposes known as RollApps.
2. Eclipse:
   • Eclipse is designed to connect the strengths of multiple blockchains into each module of Eclipse. Solana, known for its high transaction speed and parallel execution, has been chosen by Eclipse as the execution layer (Processing Layer). The Settlement Layer is handled by Ethereum to leverage its security and decentralization features, which no other network possesses. Finally, the Data Availability layer is used by Celestia to ensure minimal storage costs.