From: thepipeline_xyz
Creating a new Layer 1 (L1) blockchain, such as Monad, is driven by the ambition to achieve unprecedented performance and address the limitations of existing blockchain infrastructure. This approach stems from a belief that the underlying hardware is capable of far more than current blockchain designs allow, and that specialized, ground-up development is essential to unlock this potential [00:01:31].
Core Principles and Capabilities
Monad aims to demonstrate that a high-performance, fully EVM-compatible blockchain with low transaction fees and reasonable hardware requirements is achievable [00:00:57]. Key aspects of this rationale include:
- Unlocking Modern Hardware Potential Modern hardware, including SSD drives, PCI E4, and PCI E5, offers impressive bandwidth, storage, and low latency [00:01:31]. However, existing software often relies on general-purpose database or file system solutions that introduce algorithmic overhead and are not optimized for specific blockchain needs [00:02:00]. To achieve maximum performance, software must be specialized to take full advantage of this hardware [00:02:30].
- Building from Scratch for Optimal Performance Drawing parallels from high-frequency trading (HFT), where general libraries or software are insufficient for latency-sensitive operations [00:02:36], Monad’s team believes in building everything from scratch at a very low level [00:03:00]. This means minimizing reliance on the operating system and deeply understanding how different hardware components, like SSD drives, behave to fine-tune performance [00:03:14].
- Deep Understanding of EVM Usage Patterns Optimizing an EVM-compatible chain requires thorough analysis of how users interact with the EVM, including usage patterns of ERC-20 contracts and Uniswap [00:04:37]. This involves understanding transaction patterns, state access, scheduling, and autocorrelation (e.g., accounts used recently are likely to be used again soon) [00:04:50]. This statistical analysis informs the design of data structures and software for continuous improvement [00:05:41].
Why a New Layer 1, Not a Layer 2?
The decision to build a new L1 rather than an L2 is based on several strategic considerations:
- Bandwidth and Data Availability Constraints Existing Layer 2 solutions often face bandwidth limitations, especially regarding data availability. Monad targets a 100 megabit connection, which translates to approximately 8 usable megabytes per second of data [00:09:00]. Current data availability solutions on L2s don’t come close to this, which would constrain Monad’s desired performance [00:09:15].
- Complexity and Trade-offs of Decentralized L2s Building a decentralized L2 involves significant complexity and various design trade-offs that can affect user experience (UX) and other aspects [00:09:29]. By building all components of Monad internally, which are designed to be somewhat modular, the team can avoid much of this external complexity [00:09:50].
- Full Control for Performance and Decentralization Launching as an L1 provides full control over the system, allowing the team to ensure the necessary performance [00:10:40]. It’s considered easier to achieve high performance and decentralization when building a dedicated L1, simplifying the overall design and improving UX [00:10:48]. This avoids the complexities of coordinating between separate data and execution chains [00:11:07].
Competitive Advantage and Impact
The idea for Monad emerged from the team’s competitive advantage in building low-latency systems, honed through experience in HFT [00:11:51]. They observed that existing L1s made different trade-offs or simply copied software components [00:12:24]. By building from the ground up with this specialized expertise, they believed they could create a significantly faster and more performant blockchain [00:12:35].
The goal is to enable new applications and use cases that are not feasible on lower-performing chains [00:18:30]. This is not just about supporting more users (e.g., 10,000 users instead of 1,000), but also about enabling more complex applications per user [00:19:07], thereby expanding the possibilities of what can be built in the blockchain space [00:19:39].