Definition ∞ Modular protocol design involves structuring a system into independent, interchangeable components or layers, each responsible for a specific function. This architectural approach allows for easier development, maintenance, and upgrades, as changes to one module have limited impact on others. It promotes flexibility and scalability within complex systems.
Context ∞ The concept of modular protocol design is gaining traction in blockchain development, with news reporting on “modular blockchains” that separate execution, data availability, and settlement layers. This design aims to address scalability limitations and enhance specialization, allowing different layers to optimize for distinct functions. This architectural shift is seen as a key pathway to improving the performance and adaptability of future digital asset networks.
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