VISA ON MONOLITHIC VS. MODULAR BLOCKCHAINS

Summary from the TLDR Crypto newsletter

Visa’s crypto team recently wrote a paper describing the differences between monolithic and modular blockchain technologies. Monolithic blockchains, such as Bitcoin and Ethereum, focus on security and decentralization but face scalability challenges. In contrast, modular blockchains aim to optimize specific tasks for efficiency and scalability. They break down the blockchain into interconnected modules, offering flexibility and customization. The article compares the two approaches across various factors, including scalability, adaptability, security, and developer familiarity. The paper makes the point that as the technology advances, the spectrum of modularity in blockchain design will continue to expand, catering to specific use cases and driving future innovation.