Binance – Scaling Blockchains Embracing Modularity

The main idea behind modular blockchains is to separate the core functions of Execution, Settlement, Data Availability, and Consensus into different layers to optimize performance. The focus is on improving Data Availability capabilities to enhance scalability in Layer-2 blockchain solutions. EIP-4844 aims to reduce Data Availability costs in Ethereum, but there is also a growing interest in alternative Data Availability layers for greater scalability. Celestia is a public network optimized for Data Availability by separating execution and consensus and introducing technologies such as Data Availability Sampling and Namespace Merkle Trees. Eclipse is Ethereum's first Solana Virtual Machine Layer-2, utilizing Celestia for Data Availability. Manta Pacific is a modular Layer-2 that has successfully transitioned to Celestia's Data Availability layer, becoming the third largest in terms of Total Value Locked at $1.9 billion. In addition to modularity, scalability improvements are also happening in monolithic Layer-1s. For example, Monad is introducing parallel execution to the Ethereum Virtual Machine.