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Composable Modularity

Blockchain Modularity

Blockchain technology's evolution has given rise to two primary network designs: monolithic and modular. Traditional, monolithic blockchains encompass all essential functions—consensus, execution, data storage—within a single layer. While foundational, this approach faces scalability and flexibility challenges.

In contrast, modular blockchains represent a significant shift by decomposing the blockchain stack into specialized layers, each dedicated to a specific function. This separation allows for enhanced performance, scalability, and adaptability, enabling more efficient processing and optimization for each network's specific role.

The modular approach is exemplified by the development of Ethereum L2 solutions such as optimistic rollups (e.g., Arbitrum and Optimism) and ZK rollups (e.g. Starknet and zkSync), which focus on transaction processing and smart contract execution, thereby improving efficiency and reducing costs, and data availability layers such as Celestia or Avail.

Blockchain Composable Modularity

Composable modularity extends the concept of modularity beyond basic network functions to include a range of powerful capabilities that can be added to both monolithic and modular designs. This approach involves specialized networks designed to enable specific functionalities on other L1 and L2 platforms, hence the term "Composable Modular" networks.

A prime example of composable modularity is oracle functionality, with Chainlink being a prominent composable modular oracle network. Chainlink and similar networks play a crucial role in the Web3 ecosystem by connecting blockchains to external data sources and events, thereby enhancing the utility of smart contracts across various applications.

Other areas of composable modular functionality include privacy solutions, such as Zero Knowledge technology for smart contract privacy and Fully Homomorphic Encryption technology for confidential computing, addressing key components required for public blockchains' real-world adoption.

A Composable Modular Signature Network

The dWallet Network stands at the forefront of composable modularity as the first composable modular signature network. It introduces the dWallet primitive, a noncollusive and massively decentralized signing mechanism powered by 2PC-MPC, that can be used as a building block by builders on other networks.

The dWallet Network facilitates a wide range of use cases, including decentralized custody, interoperable DeFi, and universal "restaking," and with state proofs, its composable modularity allows builders on any L1 or L2 network to build those use cases on those networks, managing assets and logic across Web3 through light clients, paving the way for a more secure and interoperable blockchain ecosystem.