Modular Cloud: Navigating the Modular Blockchain Landscape

Yuan Han Li
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The future of blockchain technology looks increasingly modular. As with the history of technology in general, architectures where different layers of the stack specialize in different domains, tend to outcompete monolithic architectures during periods of rapid innovation. The blockchain space is no different—unbundling execution, settlement, and data availability sidesteps famed “scalability trilemma.” Specialization, or modular blockchains, could potentially lead to substantial gains in performance and efficiency without sacrificing decentralization.

Along similar lines, many application level developers chose to forgo developing their apps as smart contracts in favor of deploying them as application-specific monolithic blockchains — whether to more easily capture the MEV generated by their users or better customize their execution environments. This is due to the fact that building app-specific rollups has been challenging for developers who are not highly sophisticated.

In contrast, the Cosmos Software Developer Kit (SDK) and similar tools make it easier to deploy and customize traditional monolithic blockchains compared to rollups. However, the imminent proliferation of high-quality rollup SDKs, and better interoperability solutions, will soon make it easier than ever for application developers to embrace the new modular blockchain paradigm and deploy app-specific rollups.

If modular blockchains are the future, then the current infrastructure built for monolithic blockchain architectures is insufficient. Put simply, a plethora of interdependent execution, settlement, and data availability layers requires novel indexing and block explorer infrastructure capable of handling the ecosystem’s complexities. This is LZRS’ core insight and what spurred him to found Modular Cloud.

Modular Cloud’s cutting-edge indexing and block explorer infrastructure is specifically designed for modular blockchains and will enable users to easily search, monitor, and analyze data on these networks, providing valuable insights into their performance and operations. In a future where modular blockchains are dominant, Modular Cloud’s infrastructure will be essential for ensuring the transparency, stability, and security of these networks.

LZRS first started working in crypto in 2017 at LBRY as an early full-stack engineer. Combined with LZRS’ crypto-nativity and specifically his deep understanding of the rapidly evolving modular blockchain landscape, is Tom Hsieh—Tom recently left AWS to join Modular Cloud as CTO/co-founder—whose deep cloud expertise will be indispensable as Modular Cloud looks to continue expanding its product offering and set itself apart.

Modular Cloud has already established partnerships with key players in the modular blockchain space, such as Dymension and Eclipse, and are actively working to expand their reach and impact. With a focus on delivering value to the many rollups, settlement layers, and data availability layers soon to launch, Modular Cloud is poised to become a leader in the blockchain cloud market.

Disclosures: Blockchain Capital is an investor in several of the protocols mentioned above. The views expressed in each blog post may be the personal views of each author and do not necessarily reflect the views of Blockchain Capital and its affiliates. Neither Blockchain Capital nor the author guarantees the accuracy, adequacy or completeness of information provided in each blog post. No representation or warranty, express or implied, is made or given by or on behalf of Blockchain Capital, the author or any other person as to the accuracy and completeness or fairness of the information contained in any blog post and no responsibility or liability is accepted for any such information. Nothing contained in each blog post constitutes investment, regulatory, legal, compliance or tax or other advice nor is it to be relied on in making an investment decision. Blog posts should not be viewed as current or past recommendations or solicitations of an offer to buy or sell any securities or to adopt any investment strategy. The blog posts may contain projections or other forward-looking statements, which are based on beliefs, assumptions and expectations that may change as a result of many possible events or factors. If a change occurs, actual results may vary materially from those expressed in the forward-looking statements. All forward-looking statements speak only as of the date such statements are made, and neither Blockchain Capital nor each author assumes any duty to update such statements except as required by law. To the extent that any documents, presentations or other materials produced, published or otherwise distributed by Blockchain Capital are referenced in any blog post, such materials should be read with careful attention to any disclaimers provided therein.

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