Introduction to Monad and Its Unique Approach

Monad Labs, founded by Keone (Kian), is making waves in the blockchain space with its innovative approach to scaling Ethereum Virtual Machine (EVM) compatible blockchains. As the crypto ecosystem continues to evolve, the need for more efficient and scalable solutions becomes increasingly apparent. Monad aims to address these challenges by introducing pipelining to the EVM execution stack, a technique that promises to dramatically improve blockchain performance.

Keone, who previously led a high-frequency trading team at Jump Trading, brings a wealth of experience in system design, machine learning, quant trading, and low-level systems engineering to the project. This background in building high-performance systems at scale has given Keone and his team the confidence to tackle the complex problem of blockchain scalability.

The Unique Selling Point of Monad

At its core, Monad's uniqueness lies in its focus on EVM execution and the introduction of pipelining. Pipelining is a practice that involves identifying work that can be done in parallel and utilizing all of the system's resources efficiently by staging work and running things concurrently. By applying this concept to various areas of blockchain technology, Monad aims to help blockchains scale much more efficiently than current solutions.

Keone explains: "The thing that makes Monad unique is we're focusing on EVM execution. And very specifically, we're introducing pipelining to the EVM execution stack." This approach sets Monad apart from other blockchain projects and positions it as a potential game-changer in the realm of blockchain scalability.

The Importance of EVM Compatibility

One might wonder why Monad chose to maintain EVM compatibility rather than creating an entirely new execution environment. Keone emphasizes the importance of leveraging existing work and research:

"It's really driven by the fact that there is a lot of work that's already gone into building libraries and solidity, applications in solidity, and then I think people don't really think about the research aspect as much, but a lot of the applied cryptography research is all being done in the context of EVM as well."

This decision to remain EVM compatible allows Monad to tap into the vast ecosystem of tools, applications, and research already built around the Ethereum ecosystem. It provides a familiar environment for developers while offering significant performance improvements.

The Monad Approach vs. Layer 2 Solutions

When asked about why Monad chose to build a new Layer 1 blockchain instead of a Layer 2 solution on Ethereum, Keone provides insights into their decision-making process. While acknowledging the importance and potential of rollups, he explains that Monad's team is focused on absolute performance, scalability, and decentralization.

Keone states, "For Monad in particular, our team is just really focused on absolute performance, scalability, and decentralization. We felt that the best way to do that is having a system of nodes that are all fully replicas of each other that are communicating through consensus."

This approach allows Monad to push the limits of both the amount of computation being done and the concept of shared global state across a large number of nodes. Additionally, building an independent Layer 1 solution helps avoid the high costs associated with data availability on Ethereum-based rollups.

The Genesis of Monad

Keone's journey to founding Monad is rooted in his extensive experience in high-frequency trading. After working at GATCO and then Jump Trading for a total of ten years, Keone and his team joined the crypto division of Jump Trading in mid-2021. It was during this time, while working on Solana DeFi projects, that they identified a significant gap between the Solana ecosystem and the Ethereum ecosystem.

"We just realized that there was kind of a big, I guess a big gap between the Solana ecosystem and the Ethereum ecosystem," Keone recalls. "And Solana is amazing technology that really did a lot of things extremely well in terms of performance and ability to push all this data around the world."

However, they also recognized that the majority of DeFi users were using EVM applications. This realization led to the inception of Monad, aiming to bring high-performance capabilities to the EVM ecosystem.

Monad's Innovative Approach to Parallelization

One of the key innovations that Monad brings to the table is its approach to parallelizing transactions. Unlike some other blockchains that require developers to specify transaction dependencies upfront, Monad uses a technique called optimistic parallelization.

Keone explains the process: "Transactions are linear in Monad, i.e. a block has a list of transactions and the true end state is always just the result of executing those transactions serially. Then we have a bunch of executors that are running transactions in parallel."

This system allows for efficient parallel execution while maintaining the ability to resolve conflicts when they arise. If a conflict is detected, the transaction is rescheduled and re-executed, which is typically a low-cost operation due to caching of inputs.

Asynchronous Execution: A Game-Changing Feature

Another significant innovation in Monad's design is the concept of asynchronous or deferred execution. In this model, execution happens after consensus, which is a departure from many other blockchain designs.

Keone elaborates on this feature: "The benefit of that is that because execution is not a prerequisite to consensus, that means that there's a much larger execution budget that you can have for each block."

This approach allows Monad to have one-second blocks while still providing ample time for execution. It opens up the execution budget and gives more time each second to spend on execution, potentially leading to significant performance improvements.

TryDB: Monad's Custom State Backend

To further optimize performance, Monad has developed a custom state backend called TryDB. This backend is specifically designed for storing data in a Merkle tree and leverages asynchronous I/O to efficiently read and write from disk.

Keone highlights the importance of this innovation: "So having that backend instead of using a higher level key value store like LevelDB used by Ethereum or RocksDB used by Solana really allows us to get the most out of the disk."

This custom solution addresses a core problem in transaction execution and contributes to Monad's overall performance improvements.

Hardware Requirements and Decentralization

When it comes to hardware requirements, Monad takes a balanced approach. While acknowledging the importance of performance, the team is committed to ensuring that normal everyday people can run a node on their computer, contributing to the network's decentralization.

Keone states, "We think that it's really important for normal everyday people to be able to run a node on their computer that really contributes to the decentralization of the network."

This philosophy stands in contrast to some other high-performance blockchains that require more powerful hardware. Monad aims to achieve high performance through software optimizations rather than relying on expensive hardware.

MEV and User Experience in DeFi

The discussion also touched on the topic of Miner Extractable Value (MEV) and its impact on user experience in decentralized finance (DeFi). Keone offers a unique perspective on this issue, framing MEV as essentially user loss due to inefficient liquidity provision and high gas fees.

He explains, "I think of it, I think it's much more clear to just think about it as user loss. So basically, you know, like when you show up as a user to swap from ETH to PEPE... the expectation right now is that you're just going to pay pretty high slippage like 1% or 2% or even more."

Keone suggests that the solution to this problem lies in making it possible for liquidity providers to make markets very close to fair value and compete with each other on price. He envisions fully on-chain limit order books as a potential solution, which would be made possible by Monad's low transaction fees and high throughput.

The Future of DeFi and Centralized Exchanges

When discussing the future of decentralized exchanges (DEXs) versus centralized exchanges (CEXs), Keone expresses optimism about the potential for DEXs to offer a superior user experience. He points out several advantages of DEXs, including their non-custodial nature, quick asset withdrawal, and composability with other applications.

Keone states, "I think DEXs have a lot of other compelling attributes like the non-custodial nature, the fact that you retain control of your assets, you can withdraw your assets very quickly without having to rely on a centralized party to authorize you to transfer your assets back, as well as composability."

However, he acknowledges that for DEXs to truly compete with CEXs, they need to solve the liquidity problem and improve the economics of market making. Monad's high-performance blockchain could potentially provide the infrastructure needed to make this vision a reality.

Monad's Go-to-Market Strategy

As Monad prepares for launch, the team is mindful of the challenges faced by new blockchains entering a crowded market. Keone expresses gratitude for the community of supporters who are excited about Monad's mission, even in its pre-testnet phase.

He reflects on the unique nature of the crypto community: "I think that yeah, that's kind of the main thing that comes to mind when you ask that question. I guess I would also say with anything, the go-to-market is about demonstrating value, like demonstrating that we're doing something that's fundamentally different from other projects."

Monad's strategy focuses on demonstrating the value of cheaper, more plentiful transactions in an EVM-compatible environment. The team believes that this approach will attract developers and users who see the potential for these improvements to bring more people into the space and enhance the utility of decentralized applications.

Privacy Considerations in Blockchain Technology

While Monad's primary focus is on improving performance and scalability, Keone acknowledges the importance of privacy in blockchain technology. He recognizes that privacy is a major hurdle to adoption and a crucial consideration for users.

Keone states, "I think that privacy is definitely a major hurdle to adoption and also yeah, I think it's super important." However, he also notes that privacy-focused technologies are not Monad's area of expertise. Instead, the team is open to integrating with other projects working on privacy solutions, leveraging the common EVM standard to facilitate such integrations.

Conclusion: Monad's Vision for the Future of Blockchain

As our conversation with Keone comes to a close, it's clear that Monad represents an exciting development in the world of blockchain technology. By focusing on improving EVM execution through innovative techniques like pipelining and optimistic parallelization, Monad aims to push the boundaries of what's possible in terms of blockchain performance and scalability.

The project's commitment to maintaining EVM compatibility while dramatically improving performance could potentially bridge the gap between high-performance blockchains like Solana and the rich ecosystem of the Ethereum network. As the crypto space continues to evolve, solutions like Monad may play a crucial role in enabling the next generation of decentralized applications and financial services.

While challenges remain, particularly in terms of adoption and competition with established blockchains, Monad's unique approach and the team's deep expertise in high-performance systems position it as a project to watch in the coming years. As the blockchain industry continues to mature, innovations like those proposed by Monad may well shape the future of decentralized technology.

Facts + Figures

• Monad introduces pipelining to the EVM execution stack to improve blockchain scalability
• Keone, Monad's founder, previously led a high-frequency trading team at Jump Trading
• Monad aims to achieve 10,000 transactions per second (TPS)
• Monad uses optimistic parallelization for transaction execution
• Monad implements asynchronous (deferred) execution, moving execution after consensus
• Monad has one-second block times
• TryDB is Monad's custom state backend for efficient data storage and retrieval
• Monad aims to keep hardware requirements low to enable everyday users to run nodes
• The project maintains EVM compatibility to leverage existing tools, applications, and research
• Monad envisions fully on-chain limit order books as a potential solution to MEV and liquidity issues
• The team sees privacy as an important consideration for blockchain adoption, though it's not their primary focus
• Monad's go-to-market strategy focuses on demonstrating the value of cheaper, more plentiful transactions in an EVM-compatible environment

Questions Answered

What is Monad?

Monad is a new blockchain project that aims to improve the scalability and performance of EVM-compatible blockchains. It introduces pipelining to the EVM execution stack, which allows for more efficient parallel processing of transactions. Monad also implements innovative features like optimistic parallelization and asynchronous execution to maximize throughput while maintaining EVM compatibility.

How does Monad achieve better performance compared to other EVM-compatible blockchains?

Monad achieves better performance through several key innovations. First, it uses pipelining in the EVM execution stack to parallelize work efficiently. Second, it implements optimistic parallelization, allowing transactions to be executed in parallel and resolving conflicts when necessary. Third, Monad uses asynchronous execution, moving the execution phase after consensus, which allows for a larger execution budget per block. Lastly, Monad has developed a custom state backend called TryDB for efficient data storage and retrieval.

Why did Monad choose to remain EVM-compatible instead of creating a new execution environment?

Monad chose to remain EVM-compatible to leverage the vast ecosystem of tools, applications, and research already built around Ethereum. Keone explains that there's a significant amount of work that has gone into building libraries and applications in Solidity, as well as applied cryptography research in the context of EVM. By maintaining EVM compatibility, Monad can tap into this existing ecosystem while offering improved performance and scalability.

How does Monad address the issue of Miner Extractable Value (MEV)?

While Monad doesn't directly solve MEV, it aims to create an environment where MEV can be minimized. Keone frames MEV as essentially user loss due to inefficient liquidity provision and high gas fees. Monad's high-performance, low-fee environment could enable fully on-chain limit order books, allowing liquidity providers to make markets very close to fair value and compete on price. This could potentially reduce the impact of MEV and improve user experience in decentralized finance applications.

What are Monad's hardware requirements for running a node?

Monad aims to keep hardware requirements relatively low to enable decentralization. The team believes it's important for everyday people to be able to run a node on their computer, contributing to the network's decentralization. Instead of relying on powerful hardware, Monad focuses on software optimizations and efficient design to achieve high performance. This approach contrasts with some other high-performance blockchains that require more specialized or expensive hardware.

How does Monad plan to attract developers and users to its ecosystem?

Monad's go-to-market strategy focuses on demonstrating the value of cheaper, more plentiful transactions in an EVM-compatible environment. The team believes that by offering significant performance improvements while maintaining compatibility with existing Ethereum tools and applications, they can attract developers who see the potential for these enhancements to bring more users into the space and improve the utility of decentralized applications. Monad also benefits from a supportive community that's excited about the project's mission, even in its pre-testnet phase.

What is Monad's stance on blockchain privacy?

While Monad recognizes the importance of privacy in blockchain technology, it's not the primary focus of their project. Keone acknowledges that privacy is a major hurdle to adoption and a crucial consideration for users. However, he notes that privacy-focused technologies are not Monad's area of expertise. Instead, the team is open to integrating with other projects working on privacy solutions, leveraging the common EVM standard to facilitate such integrations in the future.