Modular Blockchains

Definition ∞ Modular Blockchains are architectural designs where a blockchain’s core functions, such as execution, data availability, consensus, and settlement, are separated into distinct, specialized layers. This separation allows each layer to be optimized independently, enhancing scalability and flexibility. The design contrasts with monolithic blockchains that handle all functions on a single layer, improving overall system performance.
Context ∞ Crypto news frequently discusses Modular Blockchains as a significant advancement addressing the scalability limitations of earlier blockchain designs. Reports analyze how this architecture enables higher transaction throughput and lower costs, which are crucial for widespread adoption of decentralized applications. The development of modular frameworks represents a key area of innovation for future blockchain infrastructure, aiming to overcome existing performance bottlenecks.