Monolithic Blockchain Report (September, 2023)

1. Researcher Comment

Certainly, news of fundraising for Layer 1 monolithic blockchains is much less common compared to rollups and modular blockchains. In recent months, there have been multiple investments in modular blockchain projects, while monolithic blockchains have not received as much attention. In my opinion, constructing a monolithic blockchain is more challenging and requires more capital compared to building a modular blockchain. Consequently, individuals are hesitant to hastily embark on developing monolithic blockchains. This is likely the reason why there is less investment news surrounding them compared to modular ones.

However, this does not mean that the monolithic blockchain ecosystem is stagnant. While new monolithic blockchains may not have emerged, the existing ones have achieved significant results this month. For instance, Sui Network introduced a groundbreaking web3 onboarding framework called zk Login, and Solana has been chosen by Visa after Ethereum. Additionally, Monad, the EVM-based monolithic blockchain that had been kept under wraps, has released its documentation, and Avalanche is also in the process of establishing a database suitable for its high-performance blockchains.

While there is a current focus on modular blockchains, it is important to note that the monolithic blockchain ecosystem is also advancing and expanding rapidly. Solana, in particular, has successfully overcome various challenges and built a strong community. It appears that they have transitioned beyond the initial phase and firmly established themselves as a stable blockchain platform. This could be why companies like Visa have selected Solana as their preferred platform, following Ethereum. The monolithic blockchain ecosystem continues to be vibrant and highly active.

2. Major Updates

2.1 Sui Network Introduces zk Login, an Effortless Web3 Onboarding Framework.

Source: Sui

Sui, a leading blockchain that inherits the DNA of Meta along with Aptos, successfully unveiled and implemented an incredibly user-friendly Web3 onboarding framework, zk Login, on September 29th. Users, if they have a Google, Twitch, Facebook, or Microsoft account, can effortlessly create an account on the Sui blockchain. This system has been designed to allow account creation without the traditionally required seed phrase that users had to note down when setting up a blockchain wallet. It's a self-custodial onboarding framework that enables users to manage their private keys independently. While leveraging Web2 information for Web3 services may seem risky, the essence of zk Login is its use of encryption technology, specifically zero-knowledge proof, which prevents a direct linkage between users' on-chain addresses and their Web2 data, ensuring Web2 companies cannot access this connection. Recognizing that wallet and address creation has long been a significant hurdle for users, this advancement by Sui indicates a promising future where blockchains can onboard users more seamlessly.

2.2 Monad, an EVM-based monolithic blockchain, launches its first documentation.

Source: Monad

On September 28th, Monad, a monolithic blockchain expected to achieve 10,000 TPS through transaction parallel processing and consensus optimization, released its first documentation on the Monad blockchain. The document contains a wealth of information, including details about Monad's consensus mechanism, Monad BFT, methodologies for transaction parallel processing, validator specifications, and more. Given its designation as "V1," it appears that more detailed information will be added in the future. While other monolithic blockchains like Sei, Sui, and Aptos are all either implementing or preparing for parallel processing, what sets Monad apart is its support for the EVM (Ethereum Virtual Machine). It remains to be seen whether Monad can combine cutting-edge consensus technology with the vast developer community of Ethereum to achieve significant success. The anticipation surrounding its potential is palpable.

2.3 Visa announces support for USDC on Solana, following Ethereum.

Source: Solana

Visa, the world's largest Electronic Funds Transfer (EFT) network provider, announced the introduction of payment services utilizing USDC. In addition to previously declaring its intent to use Ethereum-based USDC, Visa has now revealed plans to expand to Solana-based USDC for application in the USDC merchant bank payment process. After an in-depth research on Solana, Visa stated that they chose to adopt Solana-based USDC as the next step after Ethereum due to Solana's stable infrastructure, combined with its fast network speed and low network fees.

2.4 Avalanche Announces New Blockchain Database, Firewood

Source: Avalanche

Last month, after announcing a new blockchain construction framework called Hyper SDK, Avalanche has now unveiled a new database named Firewood, designed for high-performance blockchains. For clarity, unlike the immediate availability of Hyper SDK upon its announcement, Firewood is still under development and was introduced in its ongoing construction phase. The reason Avalanche is creating this new database structure is that the lack of an efficient database has long been a hindrance to enhancing blockchain performance. The future direction of Avalanche, with its new blockchain construction framework and new database, is eagerly anticipated.

2.5 SushiSwap opts for expansion to Aptos

Source: Aptos

SushiSwap, one of the most renowned multi-chain DEXes (Decentralized Exchanges) in the blockchain market, has announced its first expansion beyond the EVM (Ethereum Virtual Machine) ecosystem to the Aptos blockchain. On Aptos, both Sushi V2 AMM and SushiXswap are slated to launch. The fact that SushiSwap, which until now only supported the EVM ecosystem, has expanded to Aptos which utilizes Move, carries significant implications. With a variety of VMs currently emerging in the market, the future endeavors of Move VM are highly anticipated.

3. Fundraising

There were no monolithic blockchains that received investments this month.

4. More Reads

4.1 Project Updates

• Avalanche announces new blockchain database, Firewood

• Monad, an EVM-based monolithic blockchain, launches its first documentation

• Sui Network introduces zk Login, a user-friendly Web3 onboarding framework

• Sui Network launches its proprietary Web3 game portal, Play Beyond

• Coinbase Pay is integrated into Petra Wallet, the flagship wallet of the Aptos blockchain

• Visa introduces USDC on Solana, following its Ethereum support

• Multi-chain DEX, SushiSwap, expands its services to Aptos

• NEAR Protocol partners with SK C&C

4.2 Suggested Reads

• Software Transactional Memory

Software Transactional Memory (STM) is a concept that dates back to its first proposal in a paper by Tom Knight in 1986. Although it's an age-old concept, recently, Monad has adopted the STM method for parallel processing. Likewise, Aptos's Block-STM technology is also a parallel processing method based on STM. If monolithic blockchains aim to achieve scalability through parallel processing in the future, STM is a technology that's worth looking into.

• Deep Dive on Solana

This is a research paper on the Solana blockchain written by Visa, the world's largest Electronic Funds Transfer network provider. In truth, despite its popularity, many haven't deeply researched the Solana network. This research article by Visa serves as a valuable resource for those unfamiliar with Solana, offering insights into why a company like Visa chose Solana.

• Scaling Blockchains: the Power of Batching

Authored by Dr. Ittai Abraham, who is currently researching at Intel and making interesting strides in the BFT field, this piece addresses the three fundamental reasons why blockchains cannot achieve scalability: data, execution, and consensus. It discusses how these issues can be resolved by leveraging "batching" (processing data in bundles). For those invested in enhancing blockchain scalability, this is a valuable read.

Thanks to Kate for designing the graphics for this article.