Ethereum News Today: Monad Launches EVM-Compatible Layer 1 with 10,000 TPS Claim

Monad, a newly launched EVM-compatible Layer 1 blockchain, is positioning itself as a high-performance alternative to Ethereum and other major smart contract platforms. Designed to overcome scalability limitations while preserving full EVM compatibility, the blockchain claims to process up to 10,000 transactions per second [1]. This performance is achieved through a combination of parallel transaction execution, deferred execution, and a custom consensus algorithm known as MonadBFT [1].

Developed by Monad Labs, the project brings together a team of experts in low-latency programming and distributed systems. The founding team includes Keone Hon (CEO), James Hunsaker (CTO), and Eunice Giarta (COO). The platform’s technical design is centered around optimizing transaction throughput without compromising the usability of Ethereum-based tools and applications [1].

A key innovation of Monad is its parallel execution model. Unlike traditional EVM blockchains that process transactions sequentially, Monad allows for simultaneous execution of independent transactions. This is facilitated by a static code analyzer that predicts transaction dependencies, reducing the need for re-execution caused by conflicts. Additionally, the blockchain employs optimistic execution, assuming that transactions can be processed in parallel unless proven otherwise [1].

Another critical component of the platform is its deferred execution mechanism, which decouples transaction execution from consensus. This allows nodes to agree on the order of transactions before they are executed, significantly improving throughput and reducing computational bottlenecks [1]. The platform also utilizes a custom on-chain database, MonadDb, which supports asynchronous I/O and parallel read/write operations, further enhancing scalability.

Monad’s consensus mechanism, MonadBFT, is an optimized version of the HotStuff algorithm. It streamlines communication between nodes and reduces the number of consensus rounds, increasing overall efficiency. In the event of a failure or delay, the protocol includes a fallback mechanism to ensure consensus is still reached [1].

The platform’s EVM compatibility enables developers to migrate Ethereum-based applications to Monad with no code changes, facilitating easier adoption and integration with existing tooling. This compatibility, combined with the platform’s low gas fees and fast transaction times, makes it an attractive option for developers and users looking for a more scalable and cost-effective alternative to Ethereum.

However, the project is not without risks. The technical complexity of its execution models may present challenges for smaller development teams, increasing the cost of development and maintenance. Additionally, concerns around centralization have been raised, particularly following a $225 million funding round led by Paradigm and other major venture capital firms. Such large-scale investment can lead to imbalanced token distribution, potentially giving a small group of investors disproportionate influence over the network [1].

Compared to other EVM-compatible blockchains like BNB Smart Chain, Polygon, and Avalanche, Monad stands out for its projected high transaction speed of 10,000 transactions per second. While it offers similar EVM compatibility and low gas fees, its unique execution mechanisms and custom infrastructure position it as a distinct player in the Layer 1 space [1].

As the blockchain landscape continues to evolve, projects like Monad are likely to play a pivotal role in addressing the scalability and efficiency challenges that have long plagued smart contract platforms. By combining high throughput with EVM compatibility and a focus on decentralization, Monad aims to provide a scalable foundation for the next wave of decentralized applications and DeFi innovations.

Source: [1] https://www.coingecko.com/learn/what-is-monad-crypto