Opinion: Modularization will be one of the most profound trends in the evolution of rollup chains.
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Opinion: Modularization will be one of the most profound trends in the evolution of rollup chains.
The uniqueness of blockchain projects is becoming increasingly important.
Navigating Web3 tides with focused insightsAuthor: Lanhu Notes
Modularization encompasses not only projects evolved from Cosmos-based technologies (such as TIA, DYM, and many more yet to come), but also Ethereum L2/L3s, BTC L2s, and cross-chain solutions. These diverse projects focus on different layers, gradually breaking down the walls of isolated monolithic chains and moving toward partial convergence.
Under these circumstances, the nature and level of competition will gradually shift. Existing moats will be eroded and restructured through integration and evolution. In other words, the uniqueness of blockchain projects is becoming increasingly critical—otherwise, they risk losing relevance amid the wave of modularization.
1. 2-3 Years of Fierce Competition
With the arrival of modular blockchains, the data availability (DA) layer, execution layer, and even the settlement layer will enter a period of intense competition. After about 2-3 years of this chaotic phase, foundational projects will emerge and form the underlying infrastructure for the entire crypto ecosystem. Over time, these infrastructures will develop deeper moats that are difficult to overcome unless disrupted by breakthrough technologies.
2. The Window for New High-Performance Blockchain Projects Is Effectively Closed
In 2-3 years, unless there is a breakthrough technology, the narrative for new monolithic blockchains will largely end. Both new monolithic chains and high-performance blockchains will struggle to secure a position in the ecosystem.
3. Existing High-Performance Monolithic Chains Must Find an Indispensable Role
Even established high-performance public chains must find their essential role within this competitive landscape or risk losing their existing moats. Given the evolution of modular blockchains, the pressure on high-performance chains is substantial—compared to security, performance itself is less irreplaceable.
4. Ethereum Will Also Face Challenges
Ethereum itself will face disruptions, particularly at the DA and execution layers. However, this is inherent to how blockchains function—no single monolithic chain can solve all problems. This includes both Bitcoin and Ethereum, which operate under certain trade-offs. It’s inevitable that some value will be分流ed away.
Nevertheless, Ethereum possesses the most scarce resource in crypto—security—and thus maintains its indispensable role.
5. Possible Evolution Pathways
One possible evolutionary path is that Ethereum and Bitcoin will evolve into foundational settlement layer providers for the broader crypto ecosystem. A few other L1s may also capture partial settlement layer opportunities. The DA layer will undergo intense early-stage competition involving Ethereum, EigenDA, Celestia, Near, Avail, and others. The execution layer will primarily consist of Ethereum L2s (OP, ARB, STRK, zkSync, Blast, etc.), high-performance public chains (Solana, Avalanche, Aptos, Sui, etc.), along with a wave of emerging BTC L2 projects.
6. End of Crypto's Wild West Era: Modularization and Mass Adoption
With the advent of modular blockchains, Ethereum and Bitcoin are gradually evolving into providers of foundational security services, while other projects across the DA, execution, and settlement layers offer differentiated services catering to various application needs.
The true "diversity" in blockchain will manifest primarily at the application layer, rather than at the infrastructure level. While some decentralization will exist at the infrastructure level, it won't be fully fragmented—it will be partially decentralized.
After this cycle of modularization, infrastructure-level competition in blockchain will largely conclude. In the next decade, competition will intensify at the application layer—including gaming, social, DeFi, NFTs, AI, and shared services. This marks the beginning of mass adoption in crypto. That is, around 2-3 years from now, the crypto space will begin its transition toward widespread adoption.
From 2009 to 2026—a span of over a decade—has essentially been crypto’s wild west era, dominated by speculation. Yet during this period, the foundational infrastructure has gradually matured, paving the way for crypto to move toward mass adoption.
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