Monad is a cryptocurrency that is compatible with Ethereum is designed to have better profitability and has many new features like parallel execution. This cryptocurrency leverages MonadBFT, MonadDB, etc. to achieve high hardware throughout without interruptions. Parallel execution refers to the ability to run multiple computations within a monadic context concurrently. In this article, we shall discuss in detail Monad as a cryptocurrency, its features, how it is compatible with Ethereum, and more.
What is Monad? An Overview
Monad is a third-generation layer-1, EVM-compatible blockchain. This cryptocurrency focuses on optimizing the blockchain ecosystem. The blockchain has built optimizations into each aspect of the blockchain including parallel transaction execution, a more efficient database for recording transaction state data, and an optimized consensus algorithm.
Monad is built by Monad Labs which was founded by Keone, James, and Eunice. It accelerates the Ethereum Virtual Machine (EVM) with 10,000 transactions per second and 1-second block times offering unmatched scalability while maintaining full EVM compatibility. Monad is designed to be a thousand times faster than Ethereum. Its consumer-grade hardware creates a clear path to decentralization and has 100% compatibility with the EVM ecosystem.
A new blockchain pattern is being introduced with Monad and it is available to the developers and market issues with 4 key features as follows:
1. Asynchronous Execution
Execution begins on a block after consensus completes running parallelly to the next block’s consensus.
2. MonadBFT
A custom BFT mechanism was optimized to reduce communication phases to two which will help enhance efficiency. Its responsive design allows rounds to progress at actual network improving performance.
3. Optimistic Parallel Execution
This blockchain processes blockchain transactions by executing them in parallel. This is done by using multiple virtual machines to predict dependencies to optimize scheduling and merging results sequentially to ensure the correct execution order while maximizing resource utilization.
4. MoandDB
MonadDB allows users to keep the state on SSD instead of RAM. This reduces cost and allows consumer-grade hardware to participate in the network.
Features of MonadDB
- Decentralized
MonadDB is a decentralized platform which means that there is no intermediary when it comes to making transactions. Therefore, the transactions are transparent.
- Scalable
Scalability is the capacity of the blockchain to manage a growing volume of transactions without sacrificing efficiency. MonadDB is scalable and has not received any complaints regarding any glitches.
- Secure
MonadDB offers a secure platform, especially with the decentralized approach toward transactions that occur on the platform. The transactions also will be recorded on the blockchain so that it can never be manipulated.
- Quick
The interface of MonadDB is very quick.
- Monad being an EVM-compatible platform, is designed to be compatible with the Ethereum network’s smart contract.
Is Monad EVM Compatible?
Monad is EVM compatible with the Ethereum Virtual machine or EVM. 90% of the DeFi capital is going through EVM-powered blockchain apps, and the team has claimed to have made improvements. Layer 1 made a custom EVM that combines multiple virtual machines to process blockchain transactions within its architecture. Even though the team did not go into details, the wallets, developer tooling, and indexing tools used on Ethereum can also run on Monad.
Potential challenges Monad could face
As we know, Monad is indeed very different from Ethereum in key features such as the database approach and consensus mechanism. These features have their own technical complexities and the sequential processing is more orderly compared to parallel processing. This, in turn, may even raise conflicts and end up becoming more difficult to resolve.
On the other hand, Monad increasing its throughput associated with Ethereum is a great boon to the team. The team had also been working with its toolset which is said to increase the potential of the currency even more. With all these technical advancements, there are challenges as well as potential.
Conclusion
Now that you know all the details about Monad, you understand that Monad is not going down and that it has great potential to rise in the market especially since it is backed by Ethereum. This cryptocurrency however is in its testnet phase and the exact time of its mainnet launch is dependent on how well the testnet performs. Reports claimed that the mainnet is told to be launched in the last quarter of 2024 but issues with the testnet could push this timeline back. With this information in hand, it is up to you to decide whether you want to invest or trade in Monad. Whatever you decide, I suggest you do even deeper research before you invest. Good Luck!