What Is A Modular Blockchain?

3 min readFeb 16, 2024

Modular Blockchain Designs Are Powering A New Wave Of Scalability & Customization With SEDA

Why should you care about Modular Blockchain Design, and what is the big difference between Monolithic & Modular Blockchains? Web3 is constantly generating new terms that project after project claims are the new best thing. Over the next year, modular design infrastructure will be a game changer for blockchain design and deployment. Modular Blockchains are driving a new wave of tech that scales blockchains and helps unify the Web3 stack.

Check out SEDA Co-founder Peter Mitchell’s latest thread on Modularity at SEDA.

What are Monolithic Blockchains

To understand why Modular Blockchains are worth the hype, you’ll need to understand the previous state of Blockchains, known as Monolithic. Monolithic Blockchains are referred to as ‘generalist’ blockchains. Generalist Blockchains perform all tasks required to reach transaction settlement, also called finality.

Most blockchains, including Ethereum, Solana, and Tron, have used this method. While Monolithic Blockchains have launched Web3 into what we use today, significant restrictions have halted the scalability of Web3 needed for mass adoption, such as:

Limited Customization: On a Monolithic Blockchain, the ability to build a wholly customized dApp is limited due to space and functional limitations.

High Fees: As the Blockchain must do all steps to settle transactions, fees can creep up, as experienced on Ethereum.

Difficult To Upgrade: Changing one thing on a Monolithic Blockchain is difficult due to the interconnected nature of the chain design.

What Is A Modular Blockchain?

Recently, the focus has shifted away from Monolithic chains to Modular chains. Modular chains are specialist blockchains that focus on one or two things from

  • Data Availability
  • Execution
  • Settlement
  • Consensus

As Modular Blockchains only focus on one or two specialties, they are linked to other Modular Blockchains that all work side by side to process transactions to reach a final settlement. A group of Modular Blockchains are known as a Modular stack. A Modular Stack, where each chain focuses on one output, allows for improved developer-building capability and flexibility. By connecting different Modular chains, builders can create all kinds of Modular Stacks for different outcomes.

Modular Blockchains operate together to function as one Monolithic Blockchain would. By separating the functions of a Monolithic Blockchain across multiple Modular Blockchains, scalability, flexibility, and possibility are greatly improved.

How Does SEDA Utilize A Modular Design

SEDA is the evolution of blockchain data transfer. By adopting a modular approach and existing as a completely chain-agnostic data layer, SEDA eliminates the need for native integrations. Data queries and computations are conducted on the SEDA Chain, ensuring data is instantly accessible across networks by implementing SEDA Relay Contracts.

This new design allows for a new era of chain abstraction and modularity, allowing networks to integrate seamlessly with SEDA as their foundational layer for data. By connecting a simple SEDA relay contract, any network can get day-one access to data in an entirely permissionless way.

Subscribe to the SEDA Medium for in-depth breakdowns on SEDA’s Modular Nature.


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SEDA is a modular data layer that allows any blockchain to configure & interact with custom data feeds for price data, RPC data, or any available API endpoint.