Kenny Li, the co-founder and COO of Manta Pacific, predicts that only a select few of the 44 active Ethereum layer-2 (L2) blockchains will still be relevant in five years. Currently, these L2 networks have a combined total value locked (TVL) of $36.92 billion, with Arbitrum leading the pack at $14.5 billion TVL. However, Li believes that the future belongs to “modular” blockchains like Manta, Celestia, and Cosmos. Critics argue that this distinction is merely a “marketing stunt” and that a network’s success has more to do with its approach to development and scalability.
Li likens the proliferation of new L2s on the Ethereum network to the past “forks” of Bitcoin and Ethereum, none of which have survived. These forks, such as Bitcoin Cash and BSV, made minor changes to existing technologies in an attempt to create something “better” than the original. Similarly, in 2016, new networks like EOS and NEO positioned themselves as “Ethereum killers” by offering alternative Ethereum Virtual Machine and VM environments. Li believes that the downfall of these forks was that they were built “monolithically,” without the ability to integrate and adopt new technologies as they emerged. In contrast, modular blockchains export their primary tasks to external blockchains, allowing for greater design flexibility.
However, some, like Austin Federa from the Solana Foundation, dismiss the debate between “modular vs. monolithic” as a mere marketing tactic introduced by Celestia. Federa argues that the distinction is not natural or organic, and there’s no need to make it. He explains that monolithic networks handle tasks within a single layer, while modular networks complete tasks across several layers. Ultimately, Federa believes that these different software architecture choices are not significantly different in terms of success or outcomes.
Li claims that Manta, launched on January 18, is the “first and largest” modular L2 network on Ethereum, utilizing Optimism’s OP stack and Celestia for data availability. However, Vitalik Buterin, Ethereum’s co-founder, would argue that it makes Manta a “validium” rather than a genuine L2. At present, Manta is the fourth-largest L2 network in terms of TVL, having been recently overtaken by the new L2 Blast.
Li emphasizes that Manta takes a modular approach, allowing for the integration of different technologies to adapt to changing demands. On the other hand, Federa believes that the distinction between modular and monolithic is not useful or accurate, as they are just different software architecture choices that have similar outcomes.
In conclusion, the debate between modular and monolithic blockchains continues, with proponents arguing for the flexibility and adaptability of modular networks, while skeptics see it as a marketing ploy. Only time will tell which approach will prevail in the long run.