Monad: How this new blockchain could replace Ethereum

Scaling blockchain technology remains one of the biggest obstacles in the crypto sector. Over the years, there have been different approaches. Ethereum, for example, now uses a modular design to move transaction loads to Layer 2 networks. Solana, on the other hand, relies on a single chain that performs transactions not one after another (sequential), as on Ethereum, but simultaneously (parallel). At its peak, it reaches several thousand transactions per second.

Monad, a new Layer 1 blockchain with smart contract capabilities, is now aiming to build an Ethereum-compatible chain with parallel execution. This hasn't happened yet. The goal is to create a network that integrates seamlessly with Ethereum applications and developers while being as fast as Solana, Aptos and Co. With only $19 million in seed capital, the blockchain plans to launch early next year.

Pipelining and parallelization

Monad's USP is clear: a powerful blockchain with compatibility with Ethereum. A promise that Avalanche and Fantom have made before. Their success is debatable. Monad's technology, however, is far more complex.

Ethereum's "operating system," the Ethereum Virtual Machine (EVM), makes parallel execution of transactions difficult, according to research from the past. But simultaneous execution of transactions could mean for blockchains what multicore processors once were for computers. Next-generation networks, like Solana, Aptos and Sui, now rely on it. According to developers, Monad has now managed to maintain EVM compatibility - despite this form of processing. With decisive advantages.

For developers, this means that Ethereum applications such as Uniswap, Metamask and Etherscan can be easily ported to the powerful chain. On the surface, almost nothing changes for users compared to Ethereum. A huge advantage when you consider the reach of the ecosystem. Under the hood, Monad offers higher speed and shorter block times. This is made possible by so-called "superscalar pipelining." This is a more efficient form of task execution, as shown in the image below.

Monad: Ethereum's blessing - or curse?

So much for technology. But where should the crypto newcomer be classified? The story of "super-fast Ethereum clones" has been obsolete since the appearance of Layer 2 chains. And the new wave of "next-generation blockchains," known as "Solana killers," have so far been unconvincing, as the performance of Aptos, Sui or Sei show. Unlike them, Monad uses the network effects of the EVM to its own advantage. That means its potential user and developer base is significantly larger. The chain is essentially a 1:1 copy of the most popular smart contract platform, only faster and more efficient. But that could become a problem for Ethereum.

Monad is independent of Ethereum. In other words, it is not a scalable solution of Ethereum, but its own blockchain, with its own consensus and validators. However, by applying parallel execution and pipelining to all crucial areas of blockchain performance, Monad would be superior to Ethereum in every way. For Ethereum users, it would offer everything hoped for in previous scaling efforts. Plus, everything you always liked about Ethereum. Solana aside, who would need Ethereum then?

In any case, founder Keon Hon is confident that Monad will make an overall contribution to scaling blockchain rather than competing with other networks. More scalability is generally "better for the Ethereum ecosystem," he suggested in a Twitter thread.

The next "next generation"

However, the implementation of this vision is still a dream. It remains to be seen whether Monad will actually bring the acclaimed technology to market. The project is launching its test network in the coming weeks. A mainnet launch is expected in early 2024. Then it will become clear how much of the Ethereum ecosystem the chain will appropriate. And whether it can overtake Solana as the "fastest blockchain in the world." Big promises without substance, we are used to that in the Crypto world.

Previous next-gen blockchains didn't take decentralization very seriously either. Here Monad will also have to prove that it can adhere to the sacred faith of the blockchain industry. An issue with which Ethereum still scores points. But if you're already curious about what the industry will unveil in the coming months, you'll feel right at home on Monad's Discord server. From a price perspective, it's often young chains without a long history that take the spotlight in bull markets, such as Solana recently. Monad could also be one of tomorrow's winners. How sustainable blockchain will assert itself in the industry is another question.