What is Monad (MONAD) - A Comprehensive Overview

Key Takeaways:

• Monad is an EVM-compatible Proof-of-Stake Layer 1 blockchain created for high throughput and cost-effective transaction execution.

• The high-performance network leverages optimizations across the stack that EVM leverages to provide the most efficient scalability-decentralization tradeoff yet.

• Its ambition is to communicate seamlessly with the Ethereum ecosystem while accommodating heavier traffic in speedier, cheaper, and more secure conditions.

Monad is an EVM-compatible Layer 1 blockchain built for extreme scalability, processing 10,000 transactions per second with 1-second block times and instant finality. Positioned as 1000 times faster than Ethereum, Monad maintains full compatibility with Solidity code while offering near-zero gas fees. Ideal for building new dApps or migrating Ethereum-based solutions, this Monad blockchain presentation delves into the network, how it works, its native token MONAD, Monad staking, and the benefits it brings to the blockchain space.

What is Monad?

Monad Network is an EVM-compatible Proof-of-Stake (PoS) Layer 1 blockchain network designed for high throughput, 1-second block times and single-slot finality to offer scalability at sub-cent gas fees. The network leverages several features to provide alternative speedy, affordable, dependable decentralized finance solutions to Ethereum and other Layer 1 dApp networks such as Solana. One such feature is MonadDB, a unique database created to store blockchain state. It focuses on the current state, facilitating faster reads and writes that enable parallel execution.

Unlike most Ethereum clients, MonadDB natively integrates a Merkel Patricia Trie (MPT) data structure on-disk and in-memory. MPT is the special cryptographic data structure that allows EVM to undertake succinct blockchain data verification. Monad can optimize parallel multiple transaction processing by integrating the same data structure.

Monad seeks to ease the age-old industry challenge of blockchain trilemma by putting forth the most efficient value proposition for scalability and decentralization tradeoff yet.

The Premise of Monad Network

The Blockchain space as is currently constituted

Block creation, the building process of decentralized ledgers, requires consensus and executing orders in a predefined order. Currently, these processes are interdependent for the majority of blockchains. Intertwined processes increase the time and resources needed.

Blockchain research to modify or optimize EVM has yet to be radical enough and has achieved only modest improvement to overall throughput. Additionally, scaling decentralization remains a critical challenge because running nodes efficiently requires powerful and expensive RAM. This situation prevents prospects from participating in the network and ultimately scaling decentralization.

The Monad presentation as a solution

Efficient EVM transactions require deeper optimization of the technology stack it leverages. Ideally, such enhancements should impact every level of the stack, from the database to the VM and consensus layers. The key features of Monad Network facilitate optimization at every step, delivering increased performance and elevated degrees of decentralization.

How does Monad Network work?

Monad Network is designed to improve blockchain performance. It has four features that help enhance user and developer experiences. These features are:

• Optimistic Parallel Execution

• Asynchronous Execution

• MonadBFT

• MonadDB

Optimistic Parallel Execution

Monad Blockchain relies on optimistic execution of transactions. The network initiates the execution of transactions before earlier transactions in the block are finalized. Since incorrect execution is not unheard of in parallel execution, Monad tracks data of sequential transactions to verify the accuracy of all transaction data.

Asynchronous/ Deferred execution

The network also decouples transaction execution from the consensus process. It can process incoming transactions before the nodes reach a consensus on ordering.

This approach means that transaction execution does not impede the consensus process, opening up the network to more transactions faster.

MonadBFT

Monad uses a high-performance consensus protocol to achieve agreement on transaction ordering. It relies on the combination of partially synchronous conditions and Byzantine actors. Partial synchronous conditions, which are the precursor to parallel or asynchronous execution, ensure that completion of consensus initiates execution on a block in actions that run parallel to the consensus of the next block. This approach allows the network to introduce superscalar pipelining of the EVM.

MonadDB

MonadDB is a custom database that stores blockchain state. Ethereum clients use key value databases with little or no similarity to the Ethereum data structure. Monad, on the other hand, implements the same data structure as Ethereum. MonadDB allows the network to execute multiple transactions in parallel without necessarily spending the resources such an action demands in other non-optimized networks.

MonaDb enables the network to bypass the complicated filesystem when executing transactions, further slashing developers’ overhead. The database prioritizes storing only critical information of the current blockchain state such as account data, balances, and smart contracts code. This approach facilitates faster reads and writes, an essential ingredient of parallel execution.

These features collectively address some of the critical bottlenecks in blockchain today. Further, the network provides full EVM bytecode compatibility and Ethereum frontend tooling to improve user experience. Essentially, all resources in the Ethereum sphere such as its elaborate tooling and rich applied cryptography research, plug fluidly into Monad offering better throughput and scalability for:

• Applications such as dApps designed for Ethereum

• Developer tools such as Foundry

• Wallets like MetaMask and Phantom

• Analytics and indexing tools like Dune and Etherscan

Why is Monad Network Useful?

The value proposition of Monad Network to users and developers:

• Speedier transactions at sub-cent gas fees — Parallel processing enables Monad to handle up to 10,000 transactions per second. Such fast transactions and quicker confirmations translate to smoother user experience. Further, the network’s processing mechanism creates an efficient environment with naturally lower transaction fees, making Monad preferable for everyday transactions.

• Faster ecosystem development — EVM compatibility means that developers familiar with Ethereum can easily deploy smart contracts on Monad. This ease eliminates development and deployment friction since the developer community can use either platform without learning new toolsets or tweaking codes to dApps that have already been built.

Monad staking and Governance

MONAD is the native token of the Monad blockchain. It serves several key functions on the network such as paying for transactions on the blockchain. Users and developers interacting with dApps on Monad pay fees to process transactions using MONAD. This mechanism facilitates network functionality and keeps it secure by incentivizing validators to process transactions.

The token also plays an integral role in Monad’s governance and staking processes. Token holders participate in the network’s governance by voting on upgrade proposals, alterations to transaction fees, and any other critical decisions. In addition, validators can stake MONAD tokens to secure the blockchain and earn staking rewards in return.

How to get started with Monad

Once Monad mainnet is up and running, getting started with the network will be an easy process covered by the steps below:

Creating a wallet

Users require a Monad-compatible wallet to store and manage MONAD tokens. The blockchain space has a range of options. Users should research extensively and settle on a suitable wallet.

Buying MONAD tokens

MONAD tokens grant access to the platform. Currently, these tokens are only available from institutional investors via Simple Agreement for Future Tokens (SAFT) deals. However, immediately after they are listed on exchanges, users can buy them directly. The process would look something like:

1. Sign up or log into an exchange.

2. Search for the tokens (MONAD) and buy using approved payment methods.

3. Transfer the tokens to the Monad-compatible wallet created earlier.

4. Use appropriately.

Who created Monad Network?

Monad Network was created by Keone Hon, James Hunsaker, and Eunice Giarta. Keone and James were colleagues at the High-Frequency Trading (HFT) team at Jump Trading, an algorithmic and high-frequency trading company. Eunice, an MIT Computer Science graduate, was a former team lead at BofA Merrill Lynch in charge of enterprise trading systems creation teams.

Monad has the backing of several investors. OKX Ventures started with a strategic investment of undisclosed value. DragonFly Capital led a seed round that raised $19 million with participation from Shima Capital, Finality Capital, Placeholder Capital and Lemniscap and angel investors Naval Ravikant, Cobie and Hasu.

The founders raised a further $225 million from Paradigm with participation from Castle Island Ventures, Electric Capital, GSR Ventures, Coinbase Ventures and Greenoaks and angel investors Bryan Pellegrino, Eric Wall, Mert Mumtaz, and Luca Netz, among others.

Monad Blockchain Presentation: Closing Thoughts

Monad Network offers a fresh approach to solving some of blockchain’s biggest challenges, focusing on speed, low fees, and scalability while staying compatible with Ethereum. As seen in this Monad blockchain presentation, its innovative approach to scalability through MonadDB and parallel execution makes it an appealing choice for both developers and users.

With strong backing and a clear focus on decentralization, Monad has the potential to shape the future of decentralized applications and staking, making it a project worth following closely.