OVERVIEW OF MODULAR VS MONOLITHIC BLOCKCHAINS

Summary from the TLDR Crypto newsletter

Monolithic blockchains like Bitcoin and Ethereum integrate all functions — execution, data availability, consensus, and settlement — within a single chain, which offers simplicity and security but struggles with scalability and flexibility. On the other hand, modular blockchains distribute these functions across multiple layers or components, allowing for a customizable and scalable system. This architectural evolution aims to balance security, scalability, and decentralization, offering solutions like Celestia for data availability and the Fuel Network for independent modular protocols, despite the complexity and potential interoperability issues that come with modular designs.