Blockchain & Cryptocurrency Glossary

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Monolithic Blockchain

1 min read
Pronunciation
[mon-uh-lith-ik blok-cheyn]
Analogy
Imagine a single, highly skilled artisan (the monolithic blockchain) who does everything themselves: they source the raw materials (data availability), design the product (consensus), and then build it (execution). While capable, this artisan can only work so fast and can become a bottleneck if demand is too high.
Definition
A traditional blockchain architecture where a single network layer handles all core tasks: consensus (agreement on transaction order), execution (processing transactions and smart contracts), and data availability (ensuring all nodes can access transaction data).
Key Points Intro
Monolithic blockchains integrate all core functions into a single layer, which can lead to scalability challenges.
Key Points

Handles consensus, execution, and data availability on the same network layer.

Traditional design for early blockchains like Bitcoin and Ethereum (pre-Sharding/Merge evolutions).

Can be simpler to reason about initially but often faces the 'blockchain trilemma' (difficulty scaling while maintaining decentralization and security).

Scaling often involves Layer 2 solutions or improvements to the efficiency of this single layer.

Example
Early versions of Bitcoin and Ethereum are prime examples of monolithic blockchains. All nodes in the network were expected to handle transaction validation, consensus participation, and storing the entire blockchain state.
Technical Deep Dive
In a monolithic design, all nodes participate in all aspects of maintaining the blockchain. This ensures high security and decentralization because every transaction is typically validated by many independent participants. However, this redundancy also creates performance bottlenecks, as the network's throughput is limited by the capacity of individual nodes to process and store all data. This has led to the exploration of modular blockchain architectures.
Caveat
The term 'monolithic' can sometimes have a negative connotation, implying inflexibility or lack of scalability. However, many successful and secure blockchains are based on this architecture. The trend is towards modularity to address inherent scaling limitations.

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