From: thepipeline_xyz
Parallelization is a concept gaining traction in new blockchain Layer 1 developments, with Monad being an example [00:00:23]. However, parallel execution alone is not sufficient for significant performance improvements [00:00:33].
Monad’s Approach to Performance
Monad’s development focuses on a comprehensive approach beyond just parallel execution [00:00:39]. The development team rewrote the Ethereum Virtual Machine (EVM) stack from scratch using C++ and Rust to extract more performance from existing hardware [00:00:42]. Parallel compatibility is just one element within this broader strategy [00:00:55].
Goals and Capabilities
The primary objective for Monad is to enable High Fidelity DeFi and consumer-facing applications that cannot currently scale in other blockchain environments [00:01:00].
Current Blockchain Limitations
- On-chain Central Limit Order Books require 50 to 100 times the performance of an Automated Market Maker (AMM), which is typically unachievable due to low throughput and high gas fees [00:01:13].
- Applications with small average transactions often price out users due to high gas fees, even on Layer 2 (L2) solutions [00:01:27].
- All L2s combined currently share approximately 750 Transactions Per Second (TPS) without increasing the gas limit [00:01:44].
Monad’s Proposed Solution
Monad aims to achieve 10,000 transactions per second [00:01:51]. This focus on high throughput is a core reason for Monad launching as a Layer 1 blockchain rather than an L2 [00:01:56].
Industry Validation and Future Vision
Monad has secured a $225 million Series A funding round from leading investment firms and individuals in the crypto space [00:02:16]. This backing highlights the recognized need for performant infrastructure that can scale applications, including gaming, consumer applications, social platforms, sports betting, DePIN, and Real World Assets (RWA) [00:02:29]. The vision is for applications in two to three years to require performant infrastructure to both run and scale [00:02:44].
Monad seeks to enable new use cases in crypto while maintaining alignment with the fundamental values of decentralization [00:02:54].