A modular blockchain is an advanced structure that divides its functions into several specialized layers. Each layer has a specific role, making the system more efficient and flexible. Let's understand these layers, using examples of companies that promote these technologies:
1. Consensus Layer
What it does: This layer is responsible for ensuring that everyone on the network agrees on which transactions are valid and should be added to the blockchain.
Example: Ethereum and its Proof of Stake (PoS) consensus mechanism called Casper. Ethereum uses validators who need to stake coins (ETH) to participate in the validation process and earn rewards.
Why it's important: Without consensus, there is no trust among participants. The consensus layer ensures that all data on the blockchain is true and immutable.
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2. Data Availability Layer
What it does: Stores transaction data securely and accessibly, ensuring that all necessary information is available to users and validators.
Example: Filecoin is a decentralized data storage network. It allows people to rent out unused storage space on their computers, creating a distributed network where data can be stored securely and accessibly.
3. Execution Layer
What it does: Executes smart contracts and processes transactions. This is the layer where actions happen, such as transferring coins or executing contracts.
Example: Ethereum also shines here with its Ethereum Virtual Machine (EVM), which allows the execution of smart contracts.
Why it's important: Without execution, transactions and smart contracts couldn't be processed, making the blockchain useless for practical applications.
4. Settlement Layer
What it does: Confirms and records the completion of transactions, ensuring that all balances and changes are accurate and immutable.
Example: Polygon is a layer 2 solution that works with Ethereum. It processes transactions quickly and economically and then consolidates these transactions on Ethereum's main layer for final settlement.
Why it's important: This layer ensures that transactions are final and irreversible, guaranteeing the security and trust in the system.
5. Application Layer
What it does: This is where users interact directly with the blockchain through decentralized applications (dApps).
Example: Uniswap is an example of a dApp operating on the Ethereum blockchain, allowing decentralized token swaps without the need for an intermediary.
Why it's important: Without this layer, users would have no practical way to utilize the blockchain to solve real-world problems or enjoy its services.
Why a Modular Blockchain?
Modularity allows each layer to be optimized and improved independently of the others. Instead of an "all-in-one" approach of traditional blockchains, where all functions are performed by a single layer, the modular blockchain separates the functions into different layers. This results in:
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Better scalability: Each layer can be adjusted to handle more transactions as needed.
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Greater flexibility: It allows different blockchains to interact and collaborate, sharing resources and functionalities.
Higher efficiency: Specializing functions in separate layers can lead to faster performance and lower resource consumption.
Conclusion
A modular blockchain divides its tasks into several specialized layers to ensure efficiency, security, and scalability. Companies like Ethereum, Filecoin, Polygon, and Uniswap are examples of how these layers can be implemented and optimized to create a robust and effective blockchain system.
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