In the crypto community, "modular blockchain" has become a common buzzword, but its precise definition is often overlooked. Unlike traditional monolithic blockchains like Ethereum, which rely on a decentralized network for computation, modular blockchains aim to scale by distributing tasks to specialized environments, reducing costs and increasing speed. For instance, complex financial transactions like borrowing USDC against ETH collateral on Aave can be offloaded to external environments where calculations are simpler, leveraging technologies like fraud proofs and zk cryptography for trust. Implementing modular blockchains presents challenges due to the need for numerous integrations and choices, but builders like AltLayer Chief Operating Officer Amrit Kumar are working on tools to ease this transition. AltLayer focuses on simplifying the deployment of flexible and customized blockchains and appchains, addressing important concerns like data availability and restaking in the process.
