Monolithic blockchains have been criticized for failing to solve the Blockchain Trilemma ⛓
Are modular blockchains the future paradigm for the underlying blockchain infrastructure?
Will @CelestiaOrg be the new @ethereum?
Celestia vs Monolithic blockchains: 🧵👇
The Blockchain Trilemma:
It is difficult for a blockchain to achieve scalability, decentralization & security all at once
Only two of them can be solved simultaneously
But to gain mass adoption, blockchains must be scalable while maintaining decentralization and security
There are four blockchain operations:
• Consensus - To verify true transactions
• Data availability - The availability of transaction data
• Execution - Process transactions to transition the blockchain b/w states
• Settlement - To verify proofs, settle disputes, etc.
The predominant type of blockchains being used today are monolithic blockchains - which handle all of the blockchain operations on a single layer
And clearly, monolithic blockchains have not solved the "Blockchain Trilemma"
Monolithic blockchains also face constraints such as:
• Nodes must re-execute transactions to check the validity
• The blockchain is bound by the resource capacity of its nodes
• Security & decentralization must be sacrificed to achieve scalability
• Data availability is expensive on major L1s such as $ETH
• Developers are stuck with limited customizability over a single VM
• It is challenging for developers to launch a native token and create a consensus mechanism just to build an independent monolithic blockchain
So how does a modular blockchain solve these problems?
A modular blockchain focuses only on a few operations while leaving the rest to the other layers that co-exist as a modular stack
A modular stack is the combination of individual modular blockchains that work together
Modularity relies on specialization!
Each layer can only do specific operations that are assigned to them
A modular blockchain may often perform two or more functions
By distributing operations, the Modular Stack can solve the blockchain trilemma together as a "SYSTEM"
So, what is @CelestiaOrg?!
Celestia is a modular blockchain that only orders and publishes transactions and does not execute them
It specializes in consensus & data availability, off-loading execution to separate chains
Celestia provides three basic configurations:
1. The sovereign rollup:
A sovereign rollup uses Celestia for consensus & data availability
This means that you can fork only the settlement & execution layers & not worry about losing the security of the original chain
2. Settlement Rollup:
A settlement rollup uses Celestia for consensus & data availability which also optimizes the settlement layer for other roll-ups
Rollups can be deployed on top of the @EvmosOrg (EVM Hub on Cosmos) settlement layer with the help of Cevmos
Celestium is similar to Validium but it uses Celestia for Data Availability
The data availability on major L1s like $ETH is very expensive as everybody competes for data on a single chain
In Celestium, data is stored off-chain rather than on the L1 chain
What makes Celestia better than others and why?
Developers can define their own execution environment which can be customized & optimized for specific use cases
Celestia provides consensus & security enabling anyone to deploy a blockchain as easy as a smart contract
Celestia’s throughput scales with the number of users with the help of its unique feature (Data Availability Sampling) which enables a node to verify a block with a tiny sample of information
Modular blockchains are sovereign like L1s despite the utilization of other layers
New blockchains can simply utilize existing modular blockchains for the components they wish to off-load, which allows new blockchains to be bootstrapped efficiently
Modular blockchains allow for effective scaling because they don't have to handle all the functions
Modular blockchains might represent a new paradigm that fundamentally alters the infrastructure of the blockchain
They offer various advantages such as customizability, sovereignty, and scalability, whereas monolithic L1s continue to ask external chains for assistance