The Blockchain Status Quo
For over a decade since the technology's inception, blockchains have consistently been built and conceptualized using a "monolithic" architecture, with each chain managing its own execution, settlement, consensus, and data availability all directly on-chain.
Execution refers to the process through which transactions are defined and deployed, and thus where most user interact with a blockchain
Settlement verifies the validity of transactions through proof verification and dispute resolution, while facilitating bridging between various execution layers
Data Availability ensures that data is readily available for nodes to verify (click here to learn more)
Consensus sits at the bottom of the stack, ordering the transactions in a given block and appending new blocks to the blockchain
These general-purpose monolithic blockchains (eg. Bitcoin, Ethereum, Solana) have all attempted to accommodate users at scale on a single chain while maintaining trustless-ness and security. However, over time, each one has inevitably run into the blockchain trilemma, forcing them to ultimately sacrifice one aspect of the chain in favor of the others as increased adoption creates more pressure on the chain's performance and usability.
Clearly, improvements were needed in order for this promising technology to become a truly viable infrastructure option.
Scaling the Execution Layer
The first major improvement was achieved on Ethereum by abstracting its execution "layer" via rollup technology. Rather than relying on Ethereum itself to perform all necessary computations, transactions were sent off-chain to rollups outside of Ethereum before being bundled (or "rolled up) in large batches, compressed, and submitted back to Ethereum as calldata.
Rollups significantly reduced the strain on Ethereum's congested network, with L2 rollups like Arbitrum and Optimism offering dramatic improvements to speed and throughput by offloading execution.
Making Blockchains Fully Modular
As rollups grew in popularity, so did the notion of separating out a blockchain into its component parts. If execution could be abstracted out as its own "layer" with so much success, why not separate settlement and data availability as well?
This concept, brought to the limelight in large part by Celestia — a team building a dedicated data availability layer, signified a tectonic shift in everybody's view on blockchain scaling. Suddenly, it became clear that the days of monolithic blockchains were numbered and that the endgame for blockchain infrastructure would be modular, with each layer of functionality separated out using various innovative solutions to create a new primitive that maximized performance, efficiency, and optionality.
Rollups-as-a-Service Supporting the Modular Future
In order for the industry to realize its modular future, it became clear that shared, public blockchains would move aside in favor of dedicated, app-specific chains. Rollup-as-a-Service platforms like Caldera enabled just that, partnering with ambitious teams to launch dedicated performant rollups, secured by Ethereum, with customizations applied across the modular stack.
In conclusion, we can confirm: The future is modular.
