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4 Mar 2024

Monad: The Next Generation of Blockchain Performance and Decentralization

The blockchain ecosystem is continually evolving, with new platforms emerging to address the limitations of existing systems. One such platform is Monad, a high-performance, Ethereum-compatible Layer 1 (L1) blockchain that promises to revolutionize the way decentralized applications (dApps) operate.

Monad emerges as a solution to the critical trade-off between decentralization and scalability that has long plagued blockchain networks. With an impressive throughput of 10,000 transactions per second (tps), Monad is engineered to handle a vast number of transactions without compromising on the principles of decentralization that form the bedrock of blockchain technology. Its full compatibility with Ethereum ensures that developers can seamlessly deploy existing Ethereum dApps on Monad without any code modifications.

Why Monad is Not a Rollup

A common inquiry about Monad is why it was not implemented as a rollup—a Layer 2 (L2) scaling solution that operates on top of an existing L1 blockchain like Ethereum. The answer lies in three key areas: decentralization, performance, and focus.

Decentralization: A Cornerstone of Monad

At the heart of Monad's design philosophy is a staunch commitment to decentralization. Rollups, in their current form, often rely on a centralized sequencer for block production, which introduces vulnerabilities such as the potential for transaction censorship and the influence of centralized authorities. In contrast, Monad's proof-of-stake (PoS) consensus mechanism ensures a decentralized network of validators, upholding the platform's resistance to censorship and preserving true decentralization.

Performance: Optimizing for the Future

Monad's architecture is built from the ground up for performance. It employs pipelined execution to schedule transactions across multiple cores, optimizing the processing of related transactions. Additionally, Monad boasts a custom storage backend specifically designed for efficient state and contract code management. These technological advancements enable Monad to outperform both traditional L1 nodes and rollup nodes in terms of execution efficiency.

Focus: High-Performance EVM Execution

The Monad team's singular focus is on delivering a high-performance EVM execution environment that is accessible to all. This dedication is driven by the belief that improving the reach and utility of decentralized computation is a critical path toward advancing the blockchain ecosystem. By concentrating their efforts on execution throughput, Monad push for a more scalable and decentralized future.

The Technical Edge of Monad

Monad's technical innovations are at the core of its promise to deliver unparalleled performance and decentralization. Let's explore these features in detail.

Pipelining: A Parallelism Paradigm

Pipelining is a technique used in computer processors to enhance throughput by dividing tasks into smaller, parallelizable operations. Monad applies this concept to transaction execution, enabling the parallel processing of transactions that do not share dependencies. This method not only accelerates transaction throughput but also maintains the integrity of transaction ordering, a critical aspect of blockchain operations.

Consensus Mechanism: Beyond Traditional Models

Unlike rollups, which forgo a consensus mechanism in favor of a centralized sequencer, Monad optimizes its consensus process to work in harmony with its execution system. By adopting a modular approach where consensus is reached prior to execution, Monad ensures that its high-performance consensus can keep pace with its execution capabilities without incurring the limitations associated with a data availability layer.

Execution Focus: The Path to Scalability

Monad's laser focus on execution throughput is evident in its ability to process transactions efficiently without disrupting the user experience. Transactions without common dependencies are executed in parallel on separate cores, while those with shared dependencies are scheduled consecutively. This approach minimizes I/O overhead and maximizes the use of computational resources.

The Future of Monad

Monad's MVP has already demonstrated the ability to achieve 10,000 tps through its innovative execution techniques, and there is potential for further enhancements. The platform's long-term goal is to reach the physical limits of bandwidth, which could see transaction speeds of approximately 400,000 tps.
The promise of Monad lies not only in its current capabilities but also in its potential to reshape the blockchain landscape. As the platform evolves, it will be interesting to observe how its focus on performance and decentralization influences the development of dApps and the broader adoption of blockchain technology.

Monad stands out as a beacon of innovation in the blockchain space, offering a compelling alternative to traditional L1 blockchains and L2 rollups. Its commitment to decentralization, coupled with its cutting-edge approach to transaction execution, sets a new standard for what is possible in the world of decentralized computing. As Monad continues to develop and its public testnet becomes available, the platform is poised to make a significant impact on the blockchain ecosystem, offering users and developers a glimpse into the future of scalable