In This Article
What is Monad?
Monad is a Layer-1 smart contract platform that features innovative approaches to scaling.
The EVM-compliant protocol is designed to speed up onchain transactions and reduce user costs. It involves fast transaction processing (TPS up to 10,000), one-second block interval and instant transaction finalization.
High performance is ensured by MonadBFT's unique consensus mechanism, while EVM compatibility implies seamless interaction between developers and users with the ecosystem.
Providing a convenient and powerful L1 blockchain, Monad combines advanced technologies such as MonadDB database, deferred and parallel execution. Developers can utilize their skills and familiar Ethereum toolset to build projects on the new platform. Users get the opportunity to make fast transactions with low fees.
What is Monad Labs
The startup Monad Labs was founded in 2022. The team, which has years of experience developing high-performance trading systems in Jump Trading, aims to overcome the problems of low bandwidth and high commissions inherent in many L1 projects. CEO and co-founder of the project is Keon Hong.
By utilizing advanced blockchain technology, the company is able to set a new industry standard for speed, transparency, security and scalability, he said.
How is parallelization implemented in Monad?
A key feature of Monad is its ability for parallel execution. It allows multiple transactions to be processed simultaneously, in contrast to the sequential approach of most EVM-enabled blockchains. Examples of the latter include Ethereum, Avalanche, and BNB Chain.
The system uses optimistic concurrency control (Optimistic Concurrency Control, OCC) and programmed transactional memory. This ensures data integrity and maximizes network throughput without compromising reliability and security, making Monad a high-performance alternative in the blockchain space.
Using OCC, the system assumes that all transactions are independent and processes them simultaneously. When dependencies are detected, Monad re-executes them with updated data, applying static code analysis to predict such situations.
The new platform maintains Ethereum compatibility by structuring blocks with a linearly ordered set of transactions. This guarantees identical transaction execution results with the second-capitalization network.
What is MonadBFT?
MonadBFT, an optimized version of the HotStuff algorithm, is a high-performance consensus mechanism of the Monad blockchain. It is designed to simplify communication between validating nodes and block leaders, reducing consensus rounds and improving efficiency.
A specially designed Byzantine Fault Tolerance (BFT) mechanism quickly validates transactions even if some validating nodes are faulty or compromised.
To reach consensus on a new block, the leader sends proofs of correctness of the previous block to the validating nodes. The latter then directly send a signed "yes" message to the next leader, validating the block and signaling that it is ready to move on.
If the block leader fails and nodes do not reach consensus, MonadBFT activates a backup communication mechanism that requires more time and mutual communication between all validators. But this approach ensures that consensus is reached regardless of delays or failures.
What is MonadDb?
MonadDb is a specialized database for the state of the Monad blockchain. By storing data about the current state of the blockchain, including accounts, balances, and smart contract code, MonadDb optimizes the speed of transactions. It is critical for the parallel execution of transactions on the Monad network.
Unlike most Ethereum clients that use different data structures, it uses Patricia Trie both on disk and in memory, allowing for asynchronous I/O support.
Parallel transaction execution requires simultaneous reads and writes to the database. The MonadDb architecture can efficiently handle multiple transactions simultaneously, improving the performance and scalability of the blockchain.
What are the advantages of Monad?
Positioned as a next-generation smart contract platform, Monad offers several key advantages:
- high throughput: Monad is capable of processing up to 10,000 TPS, far outperforming many existing blockchains. Such high throughput is well suited for applications requiring fast and low-cost transactions;
- parallelization: Monad processes multiple transactions simultaneously, increasing network efficiency and reducing latency;
- high transaction speed-instantaneous finalization thanks to a "pipeline" consensus mechanism;
- complete EVM compatibility, making it easier for developers to port existing Ethereum applications and facilitate the influx of users from other ecosystems;
- innovative architecture Monad is designed to address scalability issues, ensuring the platform can support a growing number of transactions and users;
- cost reduction: Monad's system efficiency potentially results in lower transaction fees, making it an economically attractive platform for users and developers.
The table below compares Monad to popular EVM-compatible systems on key parameters.
What are the pitfalls of Monad?
Let's take a look at the potential problems with Monad:
Technical Complexity
Parallel processing and MonadBFT offer significant benefits, but also introduce some complexity: the need to maintain data consistency and resolve conflicts between transactions. Debugging and problem detection during parallel execution can be more difficult than traditional sequential processing.
Risks of centralization
A potential problem with the Monad blockchain lies in the risks of centralization. One factor is due to the significant participation of venture capital in the project, which is fraught with the concentration of a large number of tokens among several entities;
This situation in the future may lead to an imbalance in governance and decision-making processes within the network. Large investors can have a significant influence on network updates, policy changes and other important aspects.
Novelty and competition
With increasing competition, the Monad platform will inevitably face challenges in attracting users and developers already entrenched in large ecosystems;
To successfully establish a foothold in the market, Monad will need to gain the trust of the community, demonstrate real-world use cases, and provide user-friendly tools for developers. These measures will help the platform compete with existing blockchains, overcoming barriers to entry and strengthening its position in decentralized technologies.
How is the Monad project developing?
In April 2024, the Monad Labs team closed a $225 million funding round. Paradigm was the lead investor, and other participants included Electric Capital and Greenoaks.
In February, the project raised $19 million from Dragonfly Capital, Placeholder Capital, Lemniscap and Shima Capital, as well as several business angels.
In March, the developers launched devnet; during testing, the network produced 10,000 TPS.
The team plans to deploy the mainnet by the end of the year and the testnet in the coming months. Monad founder Keone Hon also allowed the release of a native token.
Real-World Use Cases and Ecosystem Growth
Monad's high throughput and low transaction costs position it as an attractive platform for a wide range of decentralized applications (dApps). Its EVM compatibility allows existing Ethereum-based projects to migrate seamlessly, opening the door for DeFi protocols, NFT marketplaces, and gaming platforms to leverage Monad’s speed and efficiency without rewriting their code
. This compatibility, combined with near-zero gas fees and 1-second finality, makes Monad particularly suitable for applications that require rapid, cost-effective transactions, such as high-frequency trading, real-time gaming, and micro-payments.
As Monad's ecosystem matures, it is expected to attract both established projects seeking scalability and new developers looking to innovate without the traditional constraints of high fees and slow confirmations.
Developer and User Accessibility
Monad is designed with accessibility in mind for both developers and users. By optimizing its database (MonadDB) to store most of the blockchain state on SSDs rather than RAM, Monad lowers the hardware requirements for running a node, making it feasible for individuals with consumer-grade equipment to participate in network validation.
This approach supports broader decentralization and lowers the barrier to entry for new network participants. For developers, Monad's full EVM compatibility means they can use familiar tools, libraries, and smart contract languages like Solidity, reducing the learning curve and accelerating adoption.
For users, the promise of near-zero gas fees and instant transaction finality delivers a smoother, more affordable blockchain experience, potentially driving greater mainstream adoption of decentralized technologies
