I'm not a crypto expert nor am I familiar with crypto terms. However, I've been thinking of the easiest way to explain the term to a layman like me. Hopefully, I'll break it down to the simplest way possible to help a beginner have a glimpse of what modular Blockchain is all about.
The four primary functions of the Blockchain network are: consensus, data availability, execution, and settlement. When a Blockchain executes a few out of these primary functions on a layer and outsources the rest on another layer, it's known as modular Blockchain. The first layer is known as the base layer. To understand more about modular Blockchain, I'll talk a little about the monolithic Blockchain- this Blockchain carries out the four primary functions of a Blockchain in the base layer. This means, the execution, consensus, data availability, and settlement is executed at the base layer.
Blockchain trilemma points out that Blockchain can only meet two out of the three properties of a Blockchain. This trilemma shows the properties of a Blockchain which are security, decentralization, and scalability. Security refers to the ability of a Blockchain to survive an attack, decentralization allows individual users to have certain control and enforce their will , and scalability refers to ability of a Blockchain to handle an increasing amount of transactions while keeping resources necessities for verification low.
A hand drawing by me to illustrate layers of function
Scalability has always been the problem of a Blockchain network , it is literally impossible to execute these four functions of a Blockchain in a single layer therefore giving birth to the idea of modular Blockchain. Unlike monolithic Blockchain where transactions can be cut off due to low storage or delayed depending on the amount of transaction, modular Blockchain outsources the other function in a different layer ensuring an efficient process. In a layman's language, Modular Blockchain allows the processing of Blockchain primary functions on different layers allowing quicker and efficient transactions.
Advantage of Modular Blockchain
The major advantage of Modular Blockchain is fixing Blockchain scalability trilemma. It allows Users avoid long confirmation time and high gas fees. It's flexible compared to the monolithic Blockchain and allows users to leverage the layout and create new Blockchain more quickly. However,. modular Blockchain has its drawbacks.
Disadvantage of modular Blockchain
When it comes to security, modular may lack protection characteristics unlike monolithic Blockchain. The design of modular Blockchain is complex, it might require the help of an expert , and finally, due to its restraining use cases, it might not draw interest on it native token, however it has implications on its token value.