Read the Ethereum era of “modularity” in one article

Ethereum development is reaching a new level of maturity. The gap between where Ethereum is currently located and its defined roadmap is rapidly closing.

Now that we are at this stage, it is clear that Ethereum is developing a modular design architecture The attributes that make the blockchain a “blockchain” are showing a trend of differentiation, so that each chain can realize its own optimal vision.

In this article, we will explore the PoS (proof of equity consensus mechanism) fragmentation (sharding) and how Rollups the modular design of the block chain, in order to achieve long-term vision Ethernet Square, and set up blocks for the future development of chain Set standards .

Read the Ethereum era of ``modularity'' in one article

01 Block chain’s “trilemma”

The infamous ” blockchain trilemma  (also known as the “impossible triangle” of blockchain) points out that you can only optimize two of the three attributes of the blockchain, and due to technical limitations, you must sacrifice them. An attribute. These three attributes are:

  • Scalability : What is the data throughput of the system? How big is TPS?
  • Decentralization : How many nodes are in the network? Are there any power centers?
  • Security : How difficult is it to attack the network?

Read the Ethereum era of ``modularity'' in one article

Above: The Impossible Triangle of Blockchain: Each side of this triangle can only achieve two properties

Why is this so? Why can’t the blockchain achieve sufficient decentralization, security, and scalability at the same time?

This is because traditional blockchains are monolithic. Blockchain always tries to achieve all three goals on the main chain (L1). However, when we modularize these components, the limitations of the blockchain trilemma disappear .

For an analogy, think about the division of labor. This economic principle divides a complex task into smaller parts, where everyone can specialize in a specific part of the job, so that the output produced by the entire system far exceeds the same number of workers working alone.

So what exactly does a modular blockchain look like? How does it work? Before explaining this, we need to understand the three components of the blockchain , which make up the three attributes of the blockchain described above .

The underlying components of the blockchain

Decentralization, scalability, and security are the three major attributes of blockchain . They are features that can be included in the blockchain, but the underlying components that implement these three attributes are also required The modular blockchain divides these components into separate parts and maximizes them . So what exactly are these low-level components?

  • Consensus : Provides security for the blockchain and defines the authoritative authenticity of the data stored on the blockchain. The consensus of the blockchain determines what the current block number is and what is contained in “Block N”. (Note: N represents the block number)
  • Execution : The calculation required to update the blockchain from “Block N” to “Block N+1”. That is to get the old state, add some new transactions at the same time, and then convert the old state to the new state. This process needs to be completed by calculation.
  • Data availability : The data that can be quoted is guaranteed by the blockchain L1 (main chain). It constitutes all the data of block N.

Before going into the explanation, let us use an analogy to familiarize ourselves with these terms. Suppose it is a Wednesday morning and you are going to a local Wells Fargo bank branch and want to deposit a check for $100.

  • The status of your account is your bank balance , which currently holds $69,420.
  • All account transactions from the time you opened the account to the current date are stored in the data availability layer , which is a centralized database hosted and protected by Wells Fargo Bank .
  • When the cashier of this branch processes your check, it is actually equivalent to Wells Fargo performing a state transition on this data availability layer , thereby updating your account balance to $69,520.
  • Now, this new status of “N+1” (that is, US$69,520) is reflected in your Wells Fargo mobile app, web terminal, and other branches. The reason for this consensus is that all updates occur in a centralized database , and only those with credentials can access the database.

Now, we extend this example to the blockchain:

  • consensus

As mentioned earlier, consensus defines the authoritative authenticity of data stored on the blockchain .

In the category of consensus, there are mainly two types of consensus, PoW (Proof of Work ) and PoS (Proof of Stake ). These consensus mechanisms determine how new blocks are added to the blockchain and how consensus participants agree on the correctness of the blocks.

By reaching a consensus, the blockchain can move forward in time without being divided into millions of different chains with their own data authenticity versions.

  • implement

The execution property of the blockchain involves carrying the state of the blockchain to the next new block .

Block N contains some specific states, which represent how data (such as state balance, contract code, etc.) is transformed from block N-1. Then verifier from the block chain of memory pool (mempool, also called trading pits) in grab some new deals, and through the production of N + 1 block to update the block N in the state, that is acquiring the block The state of N, and then change this state based on these transactions fetched from the memory pool . The mempool of the blockchain contains all the transactions waiting to be packaged and confirmed by miners/validators, just like a group of customers waiting to obtain banking services in a bank.

When the verifier uses the transactions selected from the memory pool (as input) and the consensus mechanism to calculate the state of the next new zone, it means that these transactions are being executed.

  • Data availability

Data availability refers to the data hosted on each blockchain node . If there is data on these nodes, then the data is available to anyone who uses the blockchain.

This also makes these data very important and expensive . The amount of available data is very limited (we call it scarce block space ). When you add some data to the blockchain (such as sending a transaction or deploying a contract), you are actually adding the data to all computers (nodes) running this blockchain node , and it is Add it permanently. We know that the records on the blockchain cannot be tampered with, which means that the data stored in the system can be said to be the most valuable data created by human beings.

Everyone wants to make their data (transactions) immutable, so people will compete for high prices in order to obtain these block spaces . This is why we see very high Gas prices on Ethereum L1.

02. Monolithic Blockchain

Monolithic Blockchains are blockchains that try to accomplish the three things of consensus, execution, and data availability on L1 (main chain) at the same time . Basically, most of the current blockchains, including the current PoW Ethereum chain, are monolithic blockchains .

The problem with monolithic blockchains is that they are bound by the ” blockchain trilemma “. Since the L1 layer of the same blockchain is responsible for providing the three underlying components (that is, consensus, execution, and data availability) that make the blockchain a ” blockchain ” , optimizing one of the attributes will affect the other two attributes. Bring constraints:

  • Want to have faster block generation time and larger block size to provide more block space? Then the number of nodes that can keep in sync with the blockchain can be reduced . In this way, the slow computers in the world will not slow down the speed of the blockchain.
  • Want to confirm transactions faster? The number of nodes can be reduced , so that the total number of computers (nodes) that need to be calculated is even less. In this way, we will not have a bunch of redundant computers to perform the same calculation work; but it also means that we can only trust a few nodes , and believe that these nodes that perform heavy calculation work will not affect the network. lie.
  • Want to optimize security and decentralization? It can reduce the supply of block space and reduce the hardware requirements of nodes , so that everyone can participate in the network to become nodes, but in this way, your transactions will take longer to confirm .

Monolithic blockchains have taken us so far, but now they are reaching the limits of scalability.

The era of monolithic blockchains is coming to an end.

The era of modular blockchain is coming.

03. Modular Blockchain

Modular block chain (Modular Blockchains) adopts the monolithic three L1 block chain assembly (consensus, and performs data availability), and they were divided . Just like the division of labor, the separation of these three components allows us to optimize each component and produce a better product, making the whole larger than the sum of its parts .

(1) Implement modular execution through Rollups

Rollups can process transactions several orders of magnitude faster than the L1 main chain! By creating an off- chain transaction execution environment independent of Ethereum L1 , and updating the state of L1 after processing the transaction, Rollups does not have to bear the responsibility of consensus and data availability .

The Rollups chain does not need to focus on consensus and data availability like the highly decentralized L1 chain; on the contrary, the Rollups chain is free to make any sacrifices in terms of consensus and data availability, because the Rollups chain is closely related to the Ethereum L1 in an encrypted manner . In other words, Rollup is created by initiating a transaction on Ethereum L1 based on a set of rules, and Rollup promises to abide by this set of rules. From the moment the Rollup chain is initialized, it has made a cryptographic promise to Ethereum L1 that it will comply with these rules.

Read the Ethereum era of ``modularity'' in one article

Rollups’ “initial commitment” sets limits for its own transaction management methods (that is, Rollups promises to submit mathematical proofs that all transactions are legal) , and how the security of Ethereum L1 is bridged to Rollups, and at the same time does not The slow consensus and limited data availability of L1 will be transplanted to Rollups.

In this transaction to initialize Rollup, any user is given the ability to withdraw their funds from Rollup. This is called the “escape pod”, which means that when a Rollup network crashes or becomes malicious At the time, the user can jump out of the escape pod through an L1 transaction. A broken Rollup network is like a broken elevator, but the elevator at this time becomes a walking elevator .

Regardless of whether Rollup is online and operating normally, there is a ” bridge ” between Rollup and Ethereum L1 , which allows the settlement guarantee of Ethereum L1 to extend to Rollups.

This bridge connects the security and decentralization of Ethereum L1 to Rollups’ transaction execution environment.

With this bridge, each module of Ethereum complements each other; the security module (PoS) is added to the scalability module (Rollups). Property of a module into another module of the property, which is at the same time realize how Rollups without compromising large-scale and decentralized .

The maintenance cost of Rollups is almost zero, and the Rollups network requires only a small number of nodes to be active at any given time, and these nodes do not need to assume an expensive consensus mechanism to ensure security. Ethereum L1 provides security and maintains decentralization, so Rollups does not need to .

Certain types of Rollups can even have the same high performance as centralized servers. In fact, further innovations in Rollups will enable them to have higher performance than centralized databases.

(2) Realize modular security through PoS verifiers

PoS consensus to create a mechanism responsible for providing security for the system of invisible objects, that were pledged virtual currency on the PoS network . This method of using the native currency of the blockchain to verify the blockchain decouples the connection between physical (mining) hardware and network security.

Through the PoS mechanism, there is no longer a need for a specific computer to be responsible for network security, and now all computers can be used for network security. Since ETH can be pledged on any networked computer , this reflects the value of providing security for the asset itself.

In the PoS consensus, the previous physical (mining) capital cost of maintaining the PoW network has been transformed into the cost of purchasing PoS tokens, thereby improving the capital efficiency of assets . Unlike physical mining hardware, PoS assets will not degrade over time, so PoS validators basically do not need to sell assets to pay for operating costs.

As far as the Ethereum PoS beacon chain is concerned, the economic cost of running a verification node is reduced to 32 ETH and a computer , which increases the potential total number of blockchain verifiers Although the cost of 32 ETH is still expensive (worth about 128,000 US dollars at the time of writing) , it is an order of magnitude lower than the smallest feasible PoW mining operation (tens of millions of US dollars). In addition, like Rocketpool Lido and to the center of the collateral pool allows any number of users gathered ETH pledge, such restriction is no longer a 32 ETH hard limit.

The PoS network eliminates the hardware requirements of the verification network , so that ordinary consumer-level devices can also participate in the verification of the blockchain with sufficient strength. This optimizes the connection between the blockchain network and the hardware. By minimizing the role of hardware devices, the accessibility of the blockchain can be maximized and the possibility for the largest number of people to participate in blockchain verification is provided. PoS minimizes the capital requirements for participating in network verification .

Since the launch of the Ethereum PoS beacon chain, Ethereum now has two homogeneous pools. When the old and new chains merge, these two pools become a modular network security pool, which is called ” Validator pool “, this will be the source of Ethereum’s security.

The developers of Ethereum stated that they would like to see 10 million ETH pledged in order to be considered “safe”: 10 million ETH pledged, and each verifier pledged 32 ETH, which is equivalent to 312,500 verifiers in the network.

The security of Ethereum is granulated into a single verifier instance, allowing the beacon chain to direct these verifier instances to any place where these resources are needed, thus giving Ethereum the largest choice in how to allocate its security resources.

With a modular security resource pool available (i.e. the verifier pool ), which makes it possible to pass the Ethernet Square slice (Sharding) to implement a modular data storage capacity .

(3) Maximization of data availability: sharding

Sharding will maximize the available block space in L1!

All blockchains have their security supply available Bitcoin security world supply (miners) may generate a SHA256 hash value; Square ether security PoS is verifier pool supply Ether Square verifier present.

PoS Ethereum has a ” validator pool ” composed of all validators. All validators in the pool will be randomly selected to verify Ethereum blocks. When more validators go online and provide their security to the Ethereum network (that is, pledge 32 ETH and promise to comply with the verification rules) , this will make the Ethereum network more secure.

When the added network fragmentation chain when (shards), it is possible to make more scalable Ethernet Square . Sharding allows “security redistribution” on more sharding chains instead of concentrating the security of the entire system on one chain.

Letting 30,000 validators (each validator pledge 32 ETH) to protect a monolithic blockchain is an excess of security and an inefficient allocation of resources. If these verification are assigned to the plurality of slice chain of (initially on line 64 fragmentation chain) , ether Square L1 by assigning about 4,500 certifier on each fragment strand, thereby creating 64 Ether The size of the workshop .

This makes Ethereum’s scalability and its security have a positive correlation . When the monolithic block link is close to the limit of the ” blockchain trilemma “, the block chain that implements sharding reverses the relationship between scale and security. The relationship between the two has turned its limiting factor into a growth factor.

Ethereum will initially achieve 64 shard chains, but its goal is to increase to 1024 shard chains. As Moore’s Law develops and all home computers become more powerful, the number and capacity of shard chains will increase .

At first, the realization of 64 shard chains does not mean that we have increased the capacity of Ethereum by 64 times, but the number of “Ethereum chains” we have has increased by 64 times , but the size (capacity) of each chain will be It is about 1/3 now , so the overall size will increase by about 18 times instead of 64 times .

However, as described above, with the improvement of the physical hardware and the expansion of Ethernet Square verifier pool, we will be able to increase the size and number of fragments scalability Square will be too linked to Moore’s Law.

Read the Ethereum era of ``modularity'' in one article

Above: The beacon chain is the “dispatcher” of system resources. Through random sampling, the beacon chain assigns each verifier to a specific shard chain and is responsible for the verification work in the shard chain. All validators will be disrupted again every epoch (about 6.4 minutes).

04. Optimize the synergy between modules

The beauty of modular design is that the optimization of each module will amplify the optimization of other modules There are three synergies:

  1. As more validators go online, modular PoS security can redistribute validators on more shard chains and can safely support more data Better decentralization➡️ Greater scale.
  1. L1 on more chain fragments would have a greater impact on the ability to execute Rollups . Rollups can compress and add large amounts of data to the L1 shard chain, so any additional space provided by the shard chain will have a huge impact on the space available on Rollups. Larger scale ➡️ faster execution.
  1. The more net transaction activity that occurs on Rollups, the more total fees paid when buying L1 block space . The total fee paid for the block space increases the income of the L1 validator. The more the verifier’s income, the greater the motivation to attract more verifiers to join . Adding more validators to L1 also adds more computing resources to the network , which can be used to create more shard chains . What does more shard chains mean? Refer to item 2 above.

Larger scale, faster execution

By sharding Ethereum into 64 different data availability layers, we have created more space for Rollups to deploy thousands of transaction batches . Sharding L1 will have a huge impact on the scalability of Rollups on L2. Since Rollups compresses transactions into concise data packets, any increase in data on L1 will create several orders of magnitude more space on L2.

This is when Ethereum can achieve tiny transaction costs. Ethereum that implements sharding will open the floodgates for all Rollups: the increase in available block space can greatly reduce the cost of Rollups on shards.

The compressed Rollup transaction now has more available block space supply. Rollups will share L1 transaction costs among all its users. For example, if you need to pay 1 ETH to deploy a large transaction package on Ethereum L1, then the cost of this 1 ETH will be shared among the thousands of transactions in this transaction package. When we have 64 shard chains that can be used to deploy transactions, the cost of each transaction should drop by several orders of magnitude.

Once this situation is achieved, Rollups will be able to freely stop limiting the amount of available block space (as the current Arbitrum One network does) and let the Rollups engine really work.

The combination of sharding and Rollups will allow computing resources to become assets of the network rather than liabilities. More computers, regardless of their computing power, will always be able to contribute their resources to the network and make these resources effectively used, regardless of how many resources the computer can provide. A computer can be a Rollup validator and help compress and send Rollup data to L1, or it can contribute its resources to L1’s validator pool and help start more shard chains.

In contrast, adding your node to a monolithic blockchain will create another bottleneck for the network that must be dealt with. Be aware that a monolithic blockchain cannot handle more transactions than a single node . Since all nodes of the monolithic blockchain need to process all transactions , add your computer to the monolithic blockchain , It will only add another computer to the network that needs to be able to synchronize with the entire network.

Read the Ethereum era of ``modularity'' in one article

Above: Monolithic Ethereum (left) vs. Modular Ethereum (right)

Economic sustainability

Modular Ethereum is an economically sustainable Ethereum. This is the field of cryptoeconomics. In addition to cryptography, we also need to get its economics on the right track.

In economics, Gresham’s law is a monetary principle that states that ” bad money drives out good money ” When people get two different currencies, they will store the valuable one and spend the non-valuable one .

In the case of fiat currencies, we will see people turn to the least depreciated currency, the U.S. dollar; and in the cryptocurrency world, we will ask “Which cryptocurrency has the most value appreciation?”

Bitcoin proponents ( Bitcoin ERS) for Bitcoin very excited because Bitcoin is the first commitment by hard issuance limit (a total of only 21 million BTC ) to maintain the purchasing power of their currency encryption. As the economy around Bitcoin develops, Bitcoin is expected to become more scarce. The same BTC supply, but in a larger economy, this means that BTC is more scarce.

Ethernet Square supporters (Ethereans) for the ETH and its destruction is proportional to the amount of demand for Ethernet networks Square and excited, but also probably because of the number of ETH it is destroyed by EIP-1559 exceeded new issuance becomes deflation . A larger Ethereum economy means a higher ETH burn rate, which makes ETH increasingly scarce.

Transaction fee = currency premium

Turning Gresham’s law into a cryptoeconomic term means that the transaction fees that the network needs to collect are more than the fees paid to verifiers by issuing new coins .

The encrypted economic network uses transaction fees and additional new coins to pay the network’s security providers (that is, miners or verifiers) The more transaction fees a blockchain network can collect, the fewer new coins it needs to issue .

That is, the more transaction fees collected, the fewer coins that need to be issued.

This is the scalability problem of monolithic blockchains. Many blockchains promise low transaction fees and high throughput . But by doing so, these blockchains also promised to never create a meaningful expense market . This is because if you want the block space to be cheaper, then you must not rely on transaction volume to pay for the security of the network; therefore, you must rely on the issuance of new coins in the terminology of Gresham’s Law, this will Make it a ” bad currency ” .

Below is an excerpt from an article written by Polynya :

Let’s compare Polygon PoS and Solana.

The Polygon PoS network collects approximately US$50,000 in transaction fees per day, or US$18 million per year. At the same time, Polygon is allocating more than $400 million in annual inflation incentives. This resulted in an incredible 95% net annual loss.

As for Solana, it has collected only US$10,000 per day in transaction fees for a long time, but with the rise of speculative frenzy, the network’s transaction fee income has significantly increased to US$100,000 per day, or US$36.5 million per year. But Solana is giving out an even more shocking $4 billion annual inflation reward, resulting in a net loss of 99.2%.

Solana needs to reach 154,000 TPS under the current transaction fees to achieve a balance of payments, and considering the current hardware and bandwidth, this is completely impossible.

However, the bigger problem is that these additional transaction volume increases are not without cost-they increase bandwidth requirements, greater state expansion, and, in general, higher system requirements.

The key feature of economic sustainability is that its impact is compounded in both directions .

A constrained L1 (such as the current Ethereum network) will create a strong fee market . By restricting the available block space, it is possible to increase the decentralization of the blockchain (by reducing the hardware requirements of participating nodes) and fee income (by limiting the supply of available block space) .

As far as Ethereum is concerned, scarce block space can create higher fee income for the blockchain , which in turn leads to a higher ETH burn rate , which makes ETH more scarce and more valuable.

The more valuable a currency is, the fewer new coins need to be issued in order to obtain the same security. Therefore, when the value of this currency is high, the cost of network security will actually be lower. In the paradigm of low security expenditure costs, the blockchain network will further reduce the new net issuance, because you only need to issue fewer new coins. This will further increase the scarcity and value of the asset.

In contrast, those blockchain networks that claim to provide a cheap fee environment cannot collect any meaningful fee income. If the network is unable to collect enough fee income, it must issue new coins to pay for the security costs (that is, pay rewards to the miners/validators who protect the network by issuing new coins) . If the network issues new coins to ensure security, this currency will inflate and depreciate over time.

Over time, inflation will increase the supply of this currency and reduce its value. Devaluation means that the network must issue more new coins to cover the cost of security. In this way, further issuance will lead to a further increase in supply and lead to a further depreciation of the currency, which is the beginning of a vicious inflation cycle.

Although speculation during the bull market can conceal this effect for a period of time, economic laws cannot be evaded. The currency that issued the new currency will not maintain its value like the currency that is destroyed, and these two methods will bring a completely different future.

There is a direct correlation between the throughput of L1 and the soundness of the network’s native currency .

If you increase the throughput of the blockchain, you increase asset inflation. Unfortunately, when you increase the throughput of the blockchain, you also reduce the ability of ordinary people to become validators.

This will divide the community surrounding the blockchain into two types of citizens: one type of citizens has the ability to participate in the verification of this chain and has the right to obtain benefits; the other type of citizens does not have this right and can only purchase verifiers The coins sold to them.

Read the Ethereum era of ``modularity'' in one article

05. Connect everything together

Ethereum has a restricted L1 , but it has strong decentralization and efficient security . At present, the limited block space of the Ethereum network constrains L1, creating an expensive fee market , adding a currency premium to ETH .

The slice (Sharding) will increase Ether Square L1 block space available, while increasing the security of the network. With the expansion of Ethereum’s validator pool (that is, the increase in the number of validators) , the number of feasible shard chains will also increase, so that while Ethereum increases its decentralization, the network becomes more scalable.

At the same time, Rollups creates an unconstrained execution environment , packaging and compressing transactions into the smallest possible data packets. This unlocks new types of economic activity and allows a vibrant cheap economy to flourish, which in turn increases the amount of net economic activity settled on L1. As more economic activity develops on Rollups, the expenses on Rollups will decrease because these expenses will be amortized among a wider range of participants . As more shard chains are added to Ethereum, and as the capacity of these shard chains becomes larger and larger, according to Moore’s Law, the fees on Rollups will further decrease.

The beauty of modular design is that the optimization of each module will amplify the optimization of other modules:

  • Increased the decentralization of the network through PoS, which in turn increased the number of shard chains added to Ethereum;
  • Add more shard chains on Ethereum L1, which can increase the scale of L2 Rollups by several orders of magnitude;
  • The growth of Rollups’ scale will unlock new viable economic activities, which will eventually increase the overall cost of Rollups to L1;
  • Paying more overall fees to L1 will incentivize more people to become validators, making the validator pool of Ethereum L1 larger, allowing the network to create more shard chains.
  • This cycle is repeated.

Monolithic blockchain with optimized execution

In every bull market, there will be a batch of new blockchains that choose to sacrifice decentralization to optimize the execution properties of the blockchain . These blockchains increase the block size and limit the participation of more nodes, thereby providing a low-cost network for the prosperous bull market.

During the bull market, the Ethereum and Bitcoin networks can become extremely congested because they are optimized for decentralization, which provides an opportunity for monolithic blockchains that optimize transaction execution .

But as mentioned above, monolithic blockchains that optimize transaction execution have some drawbacks: they cannot collect fees in a meaningful way, and they sacrifice decentralization .

If this optimized monolithic blockchain transforms itself into an L2 network on a different L1 chain , then this chain can actually optimize execution better without having to deal with security and decentralization The shackles of the aspect. In this way, the original assets of the network no longer need to be issued to pay for security costs, because at this time its completeness will come from another L1 chain.

Eliminating inflation from the money supply plan will have a huge impact on the long-term supply of its native assets.

Blockchains such as Solana, Binance Smart Chain (BSC), Avalanche, and Polygon may all need to transform themselves into Rollup chains to promote the long-term sustainability of their tokens. In fact, the sooner they turn themselves into a Rollup chain, the scarcer their native assets will become.

Reasonable conclusion

The cryptocurrency world is full of tribalism and politics. A person’s statement is often influenced by the tribe he belongs to, and motivation and motivation are driven by existing beliefs and prejudices.

Fortunately, code and mathematics are not affected by these factors. We can rewrite the entire article above without using the word “Ethereum” to make it an unknown roadmap for a modular blockchain.

In fact, this architecture (ie, modular architecture) is not only unique to Ethereum. Rollups is not just something dedicated to Ethereum. For example, Tezos is also embracing a Rollup-centric roadmap; NEAR is also designing data availability sharding; Celestia is also building a security & data availability layer specifically for Rollups.

The point is, if we go back in time, or jump to a different parallel universe, and roll the dice again 10,000 times, the cryptocurrency industry will find ourselves reaching the conclusion of modular design 99.9% of the time .

This is the most reasonable conclusion of the development of blockchain technology . The only reason why this conclusion has “political relevance” to Ethereum is that Ethereum is so far the only ecosystem that provides sufficient funds for related research and development work, which allows us to achieve this goal .

Over time, we will see that all L1s blockchains either evolve into a modular design structure (that is, limit L1 block space, push execution to Rollups, and increase the number of nodes) , and become non-sovereign in the world To compete in the world of currency, or they will abandon the burden of consensus and data, and simply transfer their execution environment to another more decentralized blockchain (that is, the L2 network of another blockchain) .

The modular blockchain design also illustrates the necessity of decentralization as a key attribute of the blockchain to realize all other functions. Ethereum solves the scalability trilemma by increasing decentralization instead of sacrificing decentralization. Only by optimizing decentralization can the benefits of the above-mentioned modularization be obtained.

If you embrace decentralization, then you can own anything.

Posted by:CoinYuppie,Reprinted with attribution to:
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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