Monad Deferred Execution - Unlocking Scalability and Efficiency in Blockchain Transactions
Posted January 21, 2025
In this series, we are looking at cool aspects of Monad’s design. Previously, we’ve covered Monad Pipelining and Parallel Execution. Another aspect of Monad execution that is quite cool is that execution is deferred after consensus. Monad separates execution, or the completion of transactions, from consensus, or the process by which the network comes to agreement on state.
The Limitations of Coupled Execution in Ethereum
To understand deferred execution, it helps to look at how Ethereum handles execution and consensus together. Ethereum couples transaction execution with consensus. The execution client and consensus client both work together to process transactions and maintain the Ethereum ledger’s state. The execution client handles transaction execution and state management, while the consensus client ensures agreement on the blockchain's state among network participants. This collaboration ensures that each transaction is executed and validated following the strict rules of consensus.
This coupling means that transaction execution is directly integrated into the consensus process. As transactions are processed, they are immediately subjected to consensus validation, ensuring that all network nodes maintain a consistent and accurate state. While this design maintains security and consistency, it is slow, as each transaction must be executed and validated sequentially by all participating nodes. By using more creative techniques, a blockchain can execute transactions faster and come to agreement on the state later.
How Monad Achieves Scalability with Deferred Execution
Monad uses deferred execution, meaning that it decouples transaction execution from the consensus process. This allows nodes to agree on transaction ordering without immediately executing them. This separation enables consensus to proceed without waiting for transaction processing, which allows the network to move much faster. In Monad consensus, nodes come to agreement on the ordering of transactions before the transactions are then executed.
By deferring execution, Monad extends the time available for processing transactions. This allows Monad to handle more complex transactions that require more time. More technically, it allows Monad to have a higher gas limit and support more complex smart contracts. This flexibility allows the network to handle a broader range of applications that would not be possible on Ethereum. For instance, Monad can support Central Limit Order Books (CLOBs) which require much more transaction throughput than what Ethereum can support.
Deferred execution is another one of the elements that allow Monad to execute transactions in parallel. With deferred execution, execution is no longer a bottleneck that needs to be addressed during consensus.
Overall, Monad's deferred execution is a key component of its architecture, enabling high throughput, scalability, and efficient resource handling while still remaining EVM compatible.
Conclusion
Monad’s deferred execution represents a bold step forward in blockchain innovation. By decoupling execution from consensus, Monad achieves unparalleled scalability and flexibility, supporting a broader range of applications while maintaining compatibility with the Ethereum Virtual Machine. This approach not only enables higher transaction throughput but also accommodates more complex smart contracts and DeFi use cases, such as central limit order books.
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