The blockchain space is evolving rapidly, with different architectural approaches vying for dominance in the quest for scalability, security, and decentralization. A recent podcast episode of Unlayered, hosted by Saul, brought together two experts to discuss the merits and challenges of modular versus integrated blockchain architectures. Dino, co-founder of Fluent Labs, represented the modular perspective, while Zen Lama, a developer relations professional at Monad Labs, advocated for the integrated approach.

The Alt-VM Thesis

The conversation kicked off with a reference to the "Alt-VM thesis," which categorizes alternative virtual machine architectures in the blockchain space. This thesis identifies five key architectures:

1. Linux RISC-V (e.g., Cartesi)
2. Move VM (e.g., Aptos, Sui)
3. SVM (Solana Virtual Machine)
4. Parallelized EVMs
5. WebAssembly or ZK-WASM VM

Fluent, the project co-founded by Dino, falls into the fifth category, focusing on WebAssembly and ZK-WASM VM technology. This approach is gaining traction and interest in the blockchain community, offering a new paradigm for smart contract execution and blockchain scalability.

Defining Modular and Monolithic Architectures

To set the stage for the discussion, both Dino and Zen provided their definitions of modular and monolithic (integrated) architectures.

Modular Architecture

Dino defined modular architecture as embodying two key principles:

1. Specialization: Loosely coupled services or teams focusing on their unique value propositions and outsourcing the rest.
2. Choice: Providing developers and end-users with options to select the best tools for their specific tasks, fostering intense competition.

Monolithic (Integrated) Architecture

Zen described monolithic or integrated architecture as tightly coupled systems. He emphasized that while a monolithic chain can still have a modular software architecture internally, the key difference lies in the interfaces between components:

• Modular systems have loosely defined schemas at their boundaries.
• Monolithic systems have tightly defined interfaces between components.

Zen noted that this tight coupling in monolithic systems reduces the overhead of checks between components, as assumptions can be made about how different pieces of the system are connected.

Analogies from Outside Crypto

To illustrate the difference between modular and monolithic approaches, the participants drew analogies from outside the cryptocurrency world:

1. Cloud Computing: Microservices on cloud providers like AWS represent a modular approach.
2. Apple's Hardware: Apple's integrated approach to hardware design exemplifies a monolithic architecture.

Dino, coming from a cloud infrastructure and SaaS background, drew parallels between the modular blockchain approach and the evolution of cloud services. He highlighted how the container wars played out, with technologies like Docker and Kubernetes emerging as dominant solutions.

Zen, with a background in tightly integrated, high-performance systems, used the example of Apple's M-series chips to illustrate the benefits of integrated design. He explained how putting everything on a co-located platform resulted in a 10x performance improvement, as components could communicate directly on the same chip.

Developer Perspectives and Use Cases

An interesting point of discussion was how different backgrounds and perspectives shape the way developers approach blockchain architecture. Dino views blockchains more as developer platforms, similar to cloud infrastructure, where developers are comfortable piecing together multiple tools to create the best possible experience for their applications.

Zen, on the other hand, emphasized the importance of optimizing for the atomic unit of operation in a blockchain - the transaction. He argued that integrated systems are better suited for this optimization, as they can streamline the process of data availability, execution, and consensus.

The Maturity of Blockchain Technology

A key point of contention was the current state of blockchain technology maturity. Zen argued that blockchains are not yet mature enough to warrant a fully modular approach:

"I don't feel like blockchains are that mature yet. Like I feel like we're like still at the point where like that base level of compute is something we haven't hit, you know, like to do something useful on a blockchain at scale."

Dino countered this by drawing parallels to the cloud computing era, where he observed that for the vast majority of use cases, there is a "good enough" component to performance and cost optimization. He argued that most applications don't require extreme optimization, and developers often prioritize other factors like network effects over marginal performance improvements.

The Role of Edge Computing

The discussion touched on edge computing as an example of performance optimization in cloud environments. Zen saw this as supporting his argument for co-locality and integrated systems:

"In my mind, that's like, that's the principle is like co-locality. Like that's how you get speed. So even in like a network, like you push it to the edges, like do the fast thing and then come back."

However, Dino argued that even in edge computing, there's a "good enough" factor where moving data centers slightly closer to the edge often proves sufficient, rather than optimizing for maximum performance at the edge.

Personalization vs. Open Data

An interesting point raised by Saul was the tension between personalization and open data in blockchain systems. He argued that the effectiveness of personalized feeds in centralized services like YouTube or TikTok relies on private user data, which is at odds with the open nature of blockchain data.

This highlights a challenge for blockchain-based social media platforms like Farcaster, which aim to provide personalized experiences while maintaining data openness and user privacy.

Key Criticisms and Responses

Criticisms of Modular Approach

1. Complexity for developers
2. Loss of composability
3. Poor user experience
4. Need for market makers to facilitate cross-chain activities

Dino responded to these criticisms by arguing that developers are willing to deal with extra complexity if it results in the best application experience for end-users. He drew parallels to the cloud computing world, where developers regularly evaluate and choose between multiple tools and services.

Criticisms of Integrated Approach

1. Difficulty in innovating and upgrading the system
2. Social and technical challenges in enshrining new features
3. Pressure to ossify the system over time

Zen acknowledged these challenges but argued that integrated systems can still innovate through careful design and community-driven development processes, citing Solana's approach of allowing multiple client implementations while maintaining a unified protocol.

Case Studies: Project Migrations

The discussion examined several real-world examples of projects migrating between different blockchain architectures:

1. dYdX: Moving from Ethereum to a Cosmos-based appchain
2. Celo: Transitioning from an L1 to a rollup
3. Eclipse: Building an Ethereum rollup using the Solana Virtual Machine (SVM)
4. Helium: Migrating to Solana

These examples demonstrate the fluidity of the blockchain ecosystem and the ongoing experimentation with different architectural approaches. Zen noted that these migrations often reflect the specific needs and goals of each project:

"Helium, I think migrating to Solana is like a great example of like an app that was like, wait, we don't need to maintain our whole blockchain. Right. And it was like, it was actually like not beneficial to the app itself."

The Convergence of Modular and Integrated Approaches

Both Dino and Zen acknowledged that there is likely to be some convergence between modular and integrated approaches as the blockchain industry matures. Zen pointed out that even in cloud architecture, individual services are still full-form computers first, optimized for their atomic unit of operation.

Dino agreed that there would always be a pendulum swing for any given project, with pressures to be on a general-purpose system and then move towards more or less customization as needs evolve.

Project Spotlights: Fluent and Monad

Fluent: ZK-WASM L2 on Ethereum

Dino explained that Fluent is developing a ZK-WASM Layer 2 blockchain on Ethereum. The project aims to bring general-purpose programming languages like Rust, C, and TypeScript to the Ethereum ecosystem using WebAssembly as a substrate. This approach offers improved performance and flexibility compared to existing solutions.

Dino drew an analogy to how WebAssembly impacted Web 2.0, enabling more performant and flexible applications like Figma, which disrupted the design industry. He sees a similar potential for WebAssembly in the blockchain space, particularly in the modular stack on Ethereum.

Monad: Monolithic EVM-Compatible Layer 1

Zen described Monad as a layer one blockchain with a parallel EVM implementation, designed to achieve high performance (10,000 TPS) while maintaining EVM compatibility. The project aims to bring Solana-like performance and optimization culture to the EVM ecosystem.

Zen emphasized that Monad's approach forces the monolithic problem in a tangible way:

"It's interesting like being constrained to the EVM because like to get the speed, like you do need to change like consensus and like the database. Like, and so that's what's kind of interesting to me is that it forces the monolithic problem like in a very tangible way, right?"

The Future of Blockchain Architectures

As the discussion concluded, both participants acknowledged that the blockchain industry is still in its early stages, with room for multiple approaches to coexist and evolve. The future may see a convergence of modular and integrated architectures, with different solutions optimized for specific use cases.

Key takeaways for the future of blockchain architectures include:

1. The importance of optimizing for specific use cases rather than one-size-fits-all solutions
2. The potential for hybrid approaches that combine elements of both modular and integrated designs
3. The ongoing need for experimentation and innovation in blockchain scalability and performance
4. The role of developer experience and ecosystem growth in determining the success of different architectural approaches

As the blockchain space continues to mature, projects like Fluent and Monad are pushing the boundaries of what's possible, exploring new paradigms for scalability, security, and usability. The ongoing debate between modular and integrated architectures serves as a driving force for innovation, ultimately benefiting the entire ecosystem and bringing us closer to widespread blockchain adoption.

The Role of Solana in the Architectural Debate

While the discussion primarily focused on the broader architectural debate, it's worth noting the significant role that Solana plays in this conversation. As one of the leading high-performance blockchain platforms, Solana exemplifies many of the benefits of an integrated architecture while also incorporating modular elements.

Solana's design philosophy aligns closely with Zen's arguments for optimizing the atomic unit of operation - the transaction. By tightly integrating its various components, Solana achieves remarkable speed and scalability, processing thousands of transactions per second with sub-second finality.

However, Solana also demonstrates flexibility in its approach. The platform's support for multiple client implementations, as mentioned by Zen, shows that even within an integrated architecture, there's room for modularity and diversity:

"Solana, like with all of its clients is like, no, we actually have to like start modulating our internal software a little bit more so that like someone could run the execution from fire dancer and then like consensus from labs, right?"

This approach allows Solana to maintain its high performance while still benefiting from the innovation and resilience that comes with multiple implementations.

Furthermore, Solana's ecosystem is evolving to incorporate more modular elements. The development of Solana rollups and the ability to host other blockchain environments (like Eclipse building an Ethereum rollup using the Solana Virtual Machine) demonstrate Solana's adaptability and potential to bridge the gap between integrated and modular architectures.

The migration of projects like Helium to Solana also highlights the platform's appeal as a high-performance, developer-friendly environment that can support a wide range of applications without the overhead of maintaining an independent blockchain.

As the blockchain industry continues to evolve, Solana's approach of combining a high-performance integrated core with modular flexibility could serve as a model for future blockchain architectures, offering the best of both worlds to developers and users alike.

Facts + Figures

• The Alt-VM thesis identifies five key architectures for alternative virtual machines in the blockchain space: Linux RISC-V, Move VM, SVM, Parallelized EVMs, and WebAssembly/ZK-WASM VM.
• Fluent is developing a ZK-WASM Layer 2 blockchain on Ethereum, aiming to bring general-purpose programming languages like Rust, C, and TypeScript to the Ethereum ecosystem.
• Monad is building a layer one blockchain with a parallel EVM implementation, targeting 10,000 transactions per second while maintaining EVM compatibility.
• Apple's M-series chips achieved a 10x performance improvement by putting all components on a co-located platform.
• Helium migrated from its own blockchain to Solana, recognizing that maintaining their own blockchain was not beneficial to their core application.
• dYdX moved from Ethereum to a Cosmos-based appchain, seeking more customization for their specific use case.
• Celo is transitioning from an L1 to a rollup architecture.
• Eclipse is building an Ethereum rollup using the Solana Virtual Machine (SVM).
• The cloud computing industry has shown that for the majority of use cases, there is a "good enough" component to performance and cost optimization.
• Edge computing in Web2 demonstrated that moving data centers slightly closer to the edge often proves sufficient, rather than optimizing for maximum performance at the edge.
• Figma, a $20 billion company, disrupted the design industry by using WebAssembly to build their app with a combination of Rust, TypeScript, and C++.
• Solana supports multiple client implementations while maintaining a unified protocol, allowing for innovation within an integrated architecture.

Questions Answered

What is the difference between modular and monolithic blockchain architectures?

Modular blockchain architectures focus on specialization and choice, with loosely coupled components that can be mixed and matched. Monolithic or integrated architectures have tightly coupled components with well-defined interfaces between them. Modular systems offer more flexibility and competition between different solutions, while monolithic systems can potentially achieve higher performance through tighter integration.

How do developer backgrounds influence their perspective on blockchain architecture?

Developers' backgrounds significantly shape their views on blockchain architecture. Those with cloud infrastructure and SaaS experience tend to favor modular approaches, seeing blockchains as developer platforms where multiple tools can be combined. Developers from high-performance, tightly integrated system backgrounds often prefer monolithic approaches, focusing on optimizing the core transaction processing capabilities of the blockchain.

What are the main criticisms of modular blockchain architectures?

The main criticisms of modular blockchain architectures include increased complexity for developers, potential loss of composability between different modules, concerns about user experience due to the need to interact with multiple systems, and the requirement for market makers to facilitate cross-chain activities. Proponents argue that these challenges are outweighed by the benefits of specialization and choice.

How do integrated blockchain architectures handle innovation and upgrades?

Integrated blockchain architectures face challenges in innovating and upgrading their systems due to the tight coupling of components. They often rely on careful design and community-driven development processes to implement changes. Some platforms, like Solana, allow for multiple client implementations while maintaining a unified protocol, providing a balance between integration and flexibility.

What role does WebAssembly play in blockchain development?

WebAssembly (Wasm) is emerging as an important technology in blockchain development, particularly for projects like Fluent. It allows developers to use general-purpose programming languages like Rust, C, and TypeScript in blockchain environments, potentially enabling more performant and flexible applications. Wasm's success in Web2 development, such as with Figma, suggests it could have a significant impact on blockchain application development.

How are real-world projects navigating between different blockchain architectures?

Real-world projects are actively experimenting with different blockchain architectures based on their specific needs. Examples include dYdX moving from Ethereum to a Cosmos-based appchain for more customization, Celo transitioning from an L1 to a rollup for improved scalability, and Helium migrating to Solana to focus on their core application without the overhead of maintaining their own blockchain. These migrations demonstrate the ongoing evolution and experimentation in the blockchain space.

What is the "good enough" principle in blockchain performance, and how does it relate to cloud computing?

The "good enough" principle suggests that for many blockchain applications, achieving the absolute highest performance is less critical than other factors like ease of use, network effects, or development speed. This principle is drawn from observations in cloud computing, where many businesses opt for solutions that are "good enough" in terms of performance and cost, rather than constantly optimizing for maximum efficiency. This concept challenges the notion that blockchain systems always need to prioritize maximum performance over other considerations.

How does Solana balance integrated architecture with modular flexibility?

Solana exemplifies an integrated architecture that also incorporates modular elements. While its core design is tightly integrated for high performance, Solana supports multiple client implementations, allowing for some degree of modularity. The platform is also evolving to support more modular components, such as Solana rollups and the ability to host other blockchain environments. This approach allows Solana to maintain its high performance while still benefiting from the innovation and resilience that comes with more modular designs.

What are the key differences between Fluent and Monad's approaches to blockchain scalability?

Fluent and Monad represent two different approaches to blockchain scalability. Fluent is developing a ZK-WASM Layer 2 solution on Ethereum, focusing on bringing general-purpose programming languages to the Ethereum ecosystem through WebAssembly. This approach aims to improve scalability and flexibility within the existing Ethereum framework. Monad, on the other hand, is building a monolithic, EVM-compatible Layer 1 blockchain with parallel execution, aiming to achieve high performance (10,000 TPS) while maintaining compatibility with existing Ethereum tools and applications. Both projects seek to improve scalability, but through different architectural choices.

How might modular and integrated blockchain architectures converge in the future?

As the blockchain industry matures, there's potential for convergence between modular and integrated architectures. This could involve integrated systems adopting more modular components for flexibility, while modular systems may standardize interfaces for better interoperability. The future may see hybrid approaches that combine elements of both designs, optimized for specific use cases. This convergence could lead to blockchain solutions that offer the performance benefits of integrated systems along with the flexibility and innovation potential of modular architectures.