The modular blockchain movement is gaining significant traction, with numerous innovative solutions emerging to enhance decentralization, security, and scalability. These technologies are powerful, original, and compatible, allowing developers to create complex and scalable decentralized applications (dApps) without the limitations of traditional blockchain infrastructure.
To sustain this growth, it is important to foster collaboration both on and off the blockchain. As pioneers of the modular movement, we must consider how we can optimize our systems to not only advance individually but also progress collectively.
In the modular paradigm, decentralized governance takes on a new form and complexity. While similar mechanisms used in monolithic blockchains can be applied at the protocol level, they can have a ripple effect throughout the modular ecosystem. To ensure the success of the modular thesis, we need a mechanism that maintains coherence between different layers of the stack.
As we are dealing with emerging technologies that will undergo iterations and become more sophisticated, we must carefully consider how different players come together to build something truly powerful. While we have yet to see what this scenario will look like, creating alignment between these systems will determine the viability of blockchain modularity.
To strike a balance between the community and the collective interests of the modular ecosystem, protocol governance frameworks must evolve. We can draw inspiration from the governance of open-source software, which has evolved over decades.
In a monolithic blockchain, when an upgrade occurs, the entire stack moves as one. While this may be seen as an advantage, it is closer to the “closed source” nature of web2 than we may realize. Developers must adapt to new infrastructure, even if it is not optimal for their dApp. In contrast, the modular paradigm allows developers more choice in how they compose their dApp at every layer, giving them greater autonomy. By developing open and collaborative infrastructure, we foster resilience and trust among developers. This aligns with the open-source approach to software development.
Linux is a prime example of the power of open-source software. With decades of tools, libraries, and resources, Linux is a decentralized framework that is continuously upgraded by a global community. It is versatile and free from shutdown risks, enabling the development of a variety of applications.
Just as open-source software has played a vital role in today’s technological infrastructure, the modular approach is an essential part of the evolution of the web3 landscape. However, if not planned and governed effectively, upgrades in modular protocols can lead to fragmentation. Effective governance, as demonstrated by open-source software, is crucial for success.
On a macro level, modular layers are interdependent, requiring communication and cooperation for progress. Therefore, modularity will require more governance, not less. Off-chain governance must foster a culture of rational discourse, centered around a shared purpose and vision. Decisions should revolve around this purpose.
Imagine a system of decentralized off-chain governance that exists between different modular protocols, establishing consensus around shared goals and objectives. This system would determine mutual benefit and compatibility without compromising innovation or decentralization.
Strong governance systems should exist at the ecosystem level, facilitating debate, consensus, and action within decentralized communities. This will foster alignment as technologies evolve.
On-chain governance also has a role to play, ensuring reliability and enforceability at the dApp level. We are currently experimenting with on-chain governance mechanisms to help dApp developers make upgradability decisions within a modular framework. This addresses the complexities of upgrading when the foundation shifts.
Blockchain modularity will only succeed if we commit to collaboration. It is gaining momentum as an alternative to the monolithic framework, with protocols being developed at every level of the stack. A collaborative approach is essential for the success of the modular paradigm, and critical questions must be asked about how we can collaborate effectively to achieve our shared goals.