Why M⨀nad
Posted June 13, 2024
Gmonad,
We at Kintsu believe that Monad will be the next multibillion dollar general purpose blockchain with a vibrant community and numerous, diverse use cases. The EVM is the dominant development standard in all of web3, providing a widely adopted and robust environment for writing smart contracts and developing applications. This widespread adoption means that projects built on EVM-compatible chains benefit from a rich ecosystem of tools, libraries, and developer expertise. Almost all of the tooling in web3 is centered on the EVM and Solidity, and the overwhelming majority of crypto developers are Solidity developers. Liquidity is crucial for any blockchain ecosystem, and 96% of TVL in crypto lives on Ethereum or EVM environments.
However, Ethereum L1 falls short in vertical scalability. To get the most out of any integrated blockchain system, there is a pressing need to maximize throughput on the base layer. Ethereum L1 suffers from limited blockspace, high fees, and low throughput, maxing out at 12 TPS. As the demand for dApps grows, the ability to handle a high volume of transactions efficiently becomes paramount. Though Ethereum has adopted a modular scaling roadmap with L2s, this design decision comes with tradeoffs in the form of broken composability across L2s, liquidity fragmentation, and generally worse UX.
Monad combines the network effects of the EVM with a new vertical scaling roadmap. Monad's perfectly backwards EVM compatibility allows it to tap into the extensive network, ensuring composability and ease of migration for projects looking to take advantage of a more advanced EVM. Applications, liquidity, and users will have minimal switching costs moving to Monad.
Additionally, Monad optimizes the base layer through vertical scaling. Of all the scaling techniques a blockchain can pursue, the one that gives the most “bang for your buck” is parallelization. The greatest throughput limitation for blockchains is getting the most out of hardware. Monad solves for this by not only parallelizing EVM execution, but by implementing a custom merkle database specially made for parallelized read-write. Together, we believe these factors will make Monad the best new place to build. In future posts, we will describe exactly why Kintsu is building liquid staking and why liquid staking is important to Monad.
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