The modular blockchain design space: execution, settlement and DA layers
Thread907 words
Mega thread defining execution, settlement and consensus/DA, then mapping modular layers: rollups and Fuel for execution, Celestia, Avail and EigenDA for DA, and Oasis for custom ParaTimes, with the thesis that modular is the future.
Key claims
Avail uses KZG commitments for DAS where Celestia uses fraud proofs
EigenDA uses restaked ETH to secure a DA layer
Monolithic chains bundle execution, settlement and DA in one layer
0/ 🧱 modular Saturday
#modular architecture a.k.a. separation of execution, settlement and consensus/DA layers will fundamentally reshape how we build #blockchain networks and #rollups will soon rule the world ✨
mega 🧵 exploring the modular design space (0/29) 👇
1/ so, WTF are #rollups?
a good place to start is the below thread that will give you an introduction to the idea of scaling $ETH on rollups 👇
x.com/expctchaos/status/1527419709616013313
2/ now that you know what rollups are and how they work you might want to learn more about the data availability problem, a core issue with monolithic networks like $ETH today that modular architecture aims to solve
x.com/expctchaos/status/1535698402939265025
3/ so in summary, DA on $ETH is not great & pretty expensive, making systems that use off-chain DA solutions (Validium/DAC) or systems plugging into @CelestiaOrg's specialized DA/Consensus layer more cost-competitive
WTF is #Celestia? Have a look here 👇
x.com/expctchaos/status/1535970188012572672
4/ but #Ethereum is also addressing the DA problem in its #ETH2 roadmap
a data sharding implementation referred to as danksharding aims to greatly improve $ETH base layer DA
the first step to get there is EIP-4844 a.k.a proto-danksharding
must read 👇
x.com/expctchaos/status/1532100096111824901
5/ by now, the whole thing starts to make a bit more sense
in monolithic networks (e.g. $ETH) execution, settlement & consensus/DA are unified in one layer
but what do all these terms mean? We already covered DA, so let's have a quick look at execution, settlement & consensus
6/ #execution: how nodes on the blockchain process transactions to transition the blockchain between states
7/ #settlement: blockchains provide finality (probabilistic or deterministic), a guarantee that a tx commited to the chain is irreversible. This only happens when the chain is convinced of tx validity. Hence, settlement means to validate txs, verify proofs & arbitrate disputes
8/ #consensus: mechanism by which nodes come to an agreement about what data on the blockchain can be verified as true & accurate
9/ but while this monolithic design approach has some advantages of its own (e.g. with regards to security), it doesn't necessarily scale well
10/ that's why modularists like to strip these things apart and have them done by separate, specialized layers
the modular design space hence consists of
- execution layers (the rollup, e.g. @Arbitrum)
- settlement layers (e.g. $ETH)
- consensus/DA layer (e.g. @CelestiaOrg)
11/ interesting, right? So, let's dive into the world of execution layers a bit more
let's start with execution layers built on top of #Ethereum, a.k.a. rollups
x.com/expctchaos/status/1527434609637478400
12/ prefer to deep-dive into specific execution layers and ecosystems rather than getting a high-level overview?
got you covered 🫡👇
13/ @zksync ✨
x.com/expctchaos/status/1570412185112940551
14/ #Starknet ✨
x.com/expctchaos/status/1570774568599687175
15/ @MetisDAO ✨
x.com/expctchaos/status/1537857630357446658
16/ @optimismFND ✨
x.com/expctchaos/status/1532284723183210496
17/ there is also a thread about #Arbitrum's AnyTrust scaling solution that (similar to a Validium in the zk-case) uses off-chain DA to scale massively while making certain compromises on decentralization/security
x.com/expctchaos/status/1535109516747935745
18/ as an enthusiastic #Arbinaut I have also had a closer look at the state of #Arbitrum in September if you're interested 👇
x.com/expctchaos/status/1567256640990183426
19/ buuuut before we move over to Consensus/DA layers, we should really have a closer look at the #zkEVM, an important innovation in the execution layer design space
featuring @zksync, @Scroll_ZKP, @StarkWareLtd & @0xPolygonHermez
x.com/expctchaos/status/1569717615282782209
20/ another project I'm very excited about & that I will cover in more detail tomorrow is @fuellabs_
a modular execution layer solution that can be operated in different configurations
#Fuel can be configured as a monolithic chain, a rollup on $ETH, a #Celestium, etc.
21/ moreover, @fuellabs_ has developed a custom virtual machine, the #FuelVM, that allows for parallelized transaction execution and has its own domain-specific programming language #Sway
22/ but don't forget that rollups go far beyond the $ETH ecosystem
don't believe me? Well, check out what @CelestiaOrg and @EvmosOrg are building with the #CEVMOS stack
x.com/expctchaos/status/1536423174199422976
23/ but enough on execution layers for now, let's focus on the DA/Consensus layers
as you know from the introductory post on the DA landscape, there is a variety of off-chain solutions
we have also seen @CelestiaOrg already, basically a decentralized alternative to a DAC
24/ however, there are also other specialized DA layers like @0xPolygon's #Avail
the main difference to @CelestiaOrg is that #Avail uses KZG commitments to provide light nodes the security guarantees needed for DAS instead of fraud proofs like #Celestia
x.com/expctchaos/status/1537459186421772288
25/ another super exciting thing I came across is @eigencloud's DA layer #EigenDA, basically a piece of middleware that uses a series of smart contracts on #Ethereum to allow users to re-stake staked $ETH (liquid staking derivs) in order to secure the #EigenDA layer
26/ will dive into @eigencloud in a bit more detail in the coming days, stay tuned! 🔮⚡️
27/ finally, there are other projects like $ROSE that also take a modular design approach and separating execution layers with custom VMs (para-times) from a settlement/consensus/DA layer
x.com/expctchaos/status/1537561249478651905
28/ I'm really excited about all the possibilities the modular stack gives us and truly think this is the future of blockchain architecture. It enables enormous scalability while maintaining high security & decentralization, also supporting innovation on new, powerful VM designs
29/ and if you haven't had your mind blown enough yet, check out this little teaser on @StarkWareLtd's vision of #L3 scaling and what will likely be possible in the future 🤯👇
x.com/expctchaos/status/1535336011634335744
if you liked this thread, please support by retweeting the first post (linked below) 🙏🤝
have a great weekend frens!✨
x.com/expctchaos/status/1601534426592071681
3 more images on X
What came next · since 10 Dec 2022
Show how the 2 covered assets moved
This is a landscape piece, not a set of calls. Price moves since publication are shown as market context.
Mapped in this piece · best to worst since
Mentioned for context
Since then
Maps are snapshots; see each asset's hub for later coverage.
Daily closes in USD from DefiLlama and Yahoo Finance. Only a bullish or bearish call in a thesis or market take is tracked; explainers, lists, maps and mentions are neutral context. Not financial advice.