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Protocol Unbundling

Definition

Protocol unbundling refers to separating the core functions of a blockchain protocol into distinct, modular layers or services. Instead of a single, monolithic blockchain handling all tasks like execution, data availability, and consensus, these functions are delegated to specialized protocols. This approach allows for greater scalability, flexibility, and optimization of individual components. It enables different layers to innovate independently, leading to more efficient and adaptable decentralized ecosystems.