The Importance of Shared Sequencer

シェアド・シーケンサー（Shared Sequencer）の重要性

We have invested in the Crypto infrastructure and middleware projects so far. We want to introduce "Modular Blockchain" concept as a new blockchain architecture design. Modular Blockchain projects have gotten a lot of attention from an investment perspective. Projects in this area have raised a lot of money.<h1 id="h8258169153">How the modular blockchain came into being</h1>Blockchain design was initially monolithic (meaning monolithic Note 1), with a single blockchain performing all execution, settlement, consensus, and data availability. e.g. Monolithic blockchains: Ethereum, Avalanche, Solana, etc. However, as monolithic blockchains such as Ethereum have grown, it has become clear that they have limitations in terms of scalability to handle a large number of users and a vast number of transactions. We have frequently experienced higher gas prices and transaction delays on the Ethereum when used by many users or when many transactions occurred, such as during the DeFi Summer of 2020 and the NFT Summer of 2021. In response, Ethereum is looking to expand scalability with Layer 2 blockchain and Danksharding support, starting with the introduction of EIP-4844. <img src="https://images.microcms-assets.io/assets/c5cc6f57e5fa46ba91922af7aa7fc644/ad6fed603f294f6b9e01f0daf7fd2f9f/L2Rollup.png" alt=""> L2 Rollup, Source: <a style="font-size: 0.75em" href="https://maven11.substack.com/p/the-modular-world" target="_blank" rel="noopener noreferrer">"The Modular World" by Maven11</a> <img src="https://images.microcms-assets.io/assets/c5cc6f57e5fa46ba91922af7aa7fc644/68834b5fcdb84d048f5d4ca1eb62a97b/EIP4844.png" alt=""> EIP-4844 Proto-Danksharding, Source: <a style="font-size: 0.75em" href="https://maven11.substack.com/p/the-modular-world" target="_blank" rel="noopener noreferrer">"The Modular World" by Maven11</a> This response led to the concept** of dividing the blockchain into separate functions without the need to do everything on a monolithic blockchain. An evolution of this concept is the “Modular Blockchain." The concept is that by unbundling the main functions of a layer 1 blockchain, we can make 100x improvement on the individual layers, resulting in a more scalable, combinable, decentralized system. (Note: The monolithic vs. modular debate has been a recurring topic in the history of systems development for many years; there has also been a trend toward microservices in the development of Web2.) <h1 id="h8b2f5d9ee6">Monolithic vs Modular</h1><img src="https://images.microcms-assets.io/assets/c5cc6f57e5fa46ba91922af7aa7fc644/8a6302e0e1894142ba752f897583abcf/Monolithic_Modular.png" alt=""> Source:　<a style="font-size: 0.75em" href="https://celestia.org/learn/basics-of-modular-blockchains/modular-and-monolithic-blockchains/" target="_blank" rel="noopener noreferrer">Celestia</a> I will explain what exactly modular blockchain is, referring to Celestia's website. 1 First, let us define what we mean by "modular". It means that functions that are usually integrated are separated. In a blockchain, one of the functions of execution, settlement, consensus building, and data availability is decoupled. A modular blockchain is designed to specialize in a function rather than trying to do all functions in one blockchain. The concept is to create a more scalable and customizable system by combining blockchains specializing in each function required for the blockchain. Modular blockchains are divided into the following functions. <img src="https://images.microcms-assets.io/assets/c5cc6f57e5fa46ba91922af7aa7fc644/fbb7f7af8cf34813b4e8949780668034/ModularBlockchains.png" alt=""> Source:　<a style="font-size: 0.75em" href="https://volt.capital/blog/modular-blockchains" target="_blank" rel="noopener noreferrer">"Modular Blockchains: A Deep Dive" by Volt Capital</a> <ul><li>Execution: Processing changes in transaction status.</li><li>Settlement: Proof verification and dispute resolution, bridge hub, and liquidity provision.</li><li>Consensus: Provides ordering and finality.</li><li>Data Availability: Storage and publication of data necessary to validate state transitions. Verification of data availability. This layer is the main bottleneck of blockchain scalability.</li></ul> A monolithic blockchain, on the other hand, handles all of the above functions in a single blockchain. The following issues are recognized in monolithic blockchains. <ul><li>Stringent hardware requirements: Although monolithic blockchains can increase the number of transactions processed, they require higher hardware specifications for the nodes that validate the chain. This leads to increased costs.　e.g. One of the reasons for Solana's high processing speed is the high hardware specifications of the nodes.</li><li>Bootstrapping the validator set: When launching a new monolithic blockchain, validators must be collected to ensure security.</li><li>Limitations of Control: dApps must follow the rules of the chain they are deployed to.</li></ul> Next, let's look at types of the modular blockchain. <h2 id="hdf74dc6eda">Smart contract rollup</h2><img src="https://images.microcms-assets.io/assets/c5cc6f57e5fa46ba91922af7aa7fc644/aaab2272d1c943c28da0db88c7747cbe/SmartContractRollup.png" alt=""> Source: <a style="font-size: 0.75em" href="https://celestia.org/learn/sovereign-rollups/an-introduction/" target="_blank" rel="noopener noreferrer">Celestia</a> A smart contract rollup is a blockchain that exposes the entire block to a payment layer like Ethereum. Take the Ethereum rollup. For example the smart contract rollup takes the execution part. Ethereum handles settlement, consensus building, and data availability. <img src="https://images.microcms-assets.io/assets/c5cc6f57e5fa46ba91922af7aa7fc644/006ee9c227d941ed8732a509e0c915d0/SCR2.png" alt=""> Source: <a style="font-size: 0.75em" href="https://celestia.org/learn/sovereign-rollups/an-introduction/" target="_blank" rel="noopener noreferrer">Celestia</a> As the name implies, Smart Contract Rollup is a smart contract on Ethereum that performs block validation. Since verifying transactions individually does not scale, proof efficiently verifies whether a block is valid (validity proof) or invalid (fraud proof). <h2 id="hc41ed7aa05">Sovereign rollup</h2><img src="https://images.microcms-assets.io/assets/c5cc6f57e5fa46ba91922af7aa7fc644/2b57c02437ad43d59041b411dc660895/SovereignRollup.png" alt=""> Source: <a style="font-size: 0.75em" href="https://celestia.org/learn/sovereign-rollups/an-introduction/" target="_blank" rel="noopener noreferrer">Celestia</a> Sovereign rollups, as the name implies, are sovereign rollups. It refers to a blockchain that publishes transactions to another blockchain for ordering and data availability layers, and you do settlements. Like the L1 blockchain, it can be upgraded through forking. When forked, nodes can choose whether or not to update their software. This feature brings sovereignty. <img src="https://images.microcms-assets.io/assets/c5cc6f57e5fa46ba91922af7aa7fc644/553e5f263d894230b221d71fb8ddf940/RU2.png" alt=""> 出典：　<a style="font-size: 0.75em" href="https://celestia.org/learn/sovereign-rollups/an-introduction/" target="_blank" rel="noopener noreferrer">Celestia</a> The Data Availability Layer does not validate transactions for sovereign rollups; the nodes that validate sovereign rollups are responsible for validating transactions. <h1 id="h633c979d42">Benefits of Modular Blockchain</h1>Here are some of the advantages of modular blockchain. <h2 id="h315597e4f8">Scalability</h2>The basic concept of modular blockchains was to achieve scalability by separating each blockchain function as a modular so that each function could focus on improving it. Modular blockchains like Celestia can specialize in data availability. Since there are no smart contracts, all L1 resources can be focused on L2, such as rollups, thereby increasing the data capacity that can be provided. In a monolithic blockchain, the increased usage of some applications, such as DeFi Summer, will cause the gas price of transactions to skyrocket and transaction speeds to deteriorate for users of other applications. However, this problem does not occur in a modular blockchain world because the applications reside on separate chains. Regarding the metrics for measuring scalability, Maven11 states the following. 2<blockquote>When we talk about scalability the first thought that comes to mind from most people is usually transactions per second. However, this should not be the actual discussion being had around scalability. When talking about scalability in a specialized DA layer it should rather be mb/s, instead of transactions per second which should be the major hurdle to overcome. Mb/s becomes an objective measure of the capacity of a chain, rather than tp's since transactions vary in size. Here Celestia stands quite well, since it unbloats the DA layer and utilizes data availability sampling to increase the amounts of mb/s the system can handle.</blockquote> Ethereum aims to improve scalability with EIP-4844, but when that will happen, and how much scalability will be achieved in this <a href="https://www.notion.so/Modular-Blockchain-Thesis-745c4af3d69e49238aab8d36579cb6a9?pvs=21" target="_blank" rel="noopener noreferrer">discussion</a>. Celestia uses a mechanism called Data Availability Sampling to improve the amount of data it can handle (MB/sec). Depending on the progress of Ethereum's EIP-4844, the competitive landscape for Celestia and other data availability layers will change. <h2 id="h90d730ba6c">Shared Security</h2>Building your validator set is the biggest hurdle when launching a new monolithic blockchain. From a security perspective, Sufficient validator set is essential but very difficult to achieve. For validators, being a validator for a new monolithic blockchain means investing in tokens and taking risks. Therefore, participation in new projects would be difficult. In this regard, there is no need to start a new validator set in the modular blockchain world. New blockchains can be deployed on Ethereum, Celestia, etc., with a data availability layer, leaving the security aspects to you. <h2 id="h5c8918ab48">Sovereignty.</h2>When an application is built on a monolithic blockchain, it must follow the rules of the chain it is built on. For example, an application on Ethereum must follow the rules of Ethereum. Rules are social agreements, technical rules, etc. In a modular blockchain, it is possible to control the rules that meet the requirements of each project/product with "sovereignty". For example, it is possible to build DeFi-specific chains (e.g., dYdX on Cosmos, Sei, etc.), NFTFi-specific chains (e.g., UnUniFi on Cosmos), gaming chains, etc., that require high throughput and low cost, which are rarely offered on monolithic blockchains. It is possible to build a chain specialized for gaming, etc. <h1 id="h1e13fe5e71">Challenges of Modular Blockchains</h1>We have had discussions with founders, developers, and investors of modular blockchains. While they have received a lot of attention, some have questioned the challenges that need to be solved and the usefulness of modular blockchains when they are assumed to be modular. We believe decentralization, composability, and interoperability, critical elements of Crypto, must be ensured even in modular blockchains. Let's take a look at the issues and discussions on modular blockchains. <h2 id="h839e307709">Hidden Costs of Modular Blockchains</h2>Kyle of Multicoin Capital, a prominent investor who has helped Solana, a monolithic blockchain, from its inception, writes, <a href="https://multicoin.capital/2023/08/15/the-hidden-costs-of-modular-systems/" target="_blank" rel="noopener noreferrer">The Hidden Costs of Modular Systems</a>.<blockquote>Modular building blocks are great. But the key to building winning technologies is to figure out which pieces of the stack to integrate, and which pieces to leave for others. And as it stands now, chains that integrate DA and execution inherently offer simpler end-user and developer experiences, and will ultimately provide a better substrate for best-in-class applications.</blockquote>The reasons for this are the following shortcomings of modular blockchains. <ul><li>Modular blockchains do not execute code fast enough</li><li>Modularity increases transaction costs for users</li><li>App rollups do not provide new monetization opportunities for developers</li><li>App rollups do not address congestion between apps</li><li>Flexibility is overrated</li></ul> <h2 id="hbc6066cd4a">Interoperability</h2>When the number of blockchains increases significantly due to modular blockchains, rollups, app-chains, etc., it becomes challenging to maintain the interoperability of different blockchains. Specifically, the following two problems can be identified. <h3 id="h983fbcb38b">State Fragmentation</h3>Modular blockchains, where the application state is held in different execution layers, make retrieving and validating that data difficult. Applications running on a monolithic blockchain do not have this problem because all contract state is stored on the same network. The problem may be further complicated when smart contracts are deployed on multiple blockchains, such as L1, L2, and L3. The solution to this problem is messaging protocols. A generalized messaging protocol allows arbitrary messages to be transferred between different chains. Messaging protocols solve state fragmentation by verifying and relaying packets of data between chains. Protocols such as LayerZero, Axelar, Hyperlane, and Wormhole offer solutions as messaging protocols. The leading standardized method for inter-chain messaging is Inter-Blockchain Communication (IBC), which is widely deployed in the Cosmos ecosystem. But the IBC developer experience needs to be improved for wider adoption. <img src="https://images.microcms-assets.io/assets/c5cc6f57e5fa46ba91922af7aa7fc644/14d1d5060acf4d8b96f9e7819baaedaf/Polymer.png" alt=""> <a href="https://www.polymerlabs.org/" target="_blank" rel="noopener noreferrer">Polymer</a> combines IBCs with zero-knowledge proofs and a Tendermint-based consensus engine to build a modular IBC transport hub. This enables communication between modular blockchains in a form that minimizes trust. <img src="https://images.microcms-assets.io/assets/c5cc6f57e5fa46ba91922af7aa7fc644/be41a98da9404c648e1f0e063c2447c5/MHIBC.png" alt=""> Currently, IBC connections are one-to-one with IBC channels; Polymer has made a multi-hop upgrade to change IBC connections to one-to-N with IBC channels. The exponential increase in the number of connections was changed to a linear change, thus reducing the cost of maintaining connections throughout the chain. Disclosure: Polymer is a Tané portfolio project. <h3 id="h5e63aebc3f">Fragmentation of Liquidity</h3>Liquidity refers to the efficiency and ease with which assets can be bought and sold on optimal terms. Liquidity is very important for the DeFi project because it affects user slippage. A monolithic blockchain DeFi project will not have liquidity issues because all users will trade on the same network. However, some chains' liquidity may be low if the project is deployed on multiple chains. (e.g., Uniswap has inferior liquidity outside of Ethereum) Low liquidity may result in significant slippage or inability to handle large positions. The solution to this problem is the Cross-Chain Liquidity Protocol. Using a standard bridge to move assets involves many steps and a poor user experience. Cross-chain liquidity protocols such as <a href="https://catalyst.exchange/" target="_blank" rel="noopener noreferrer">Catalyst</a> attempt to build a liquidity layer across cross-chains and provide a cross-chain AMM-like solution. Disclosure: Catalyst is a Tané portfolio project. <h1 id="h8ca3832f6d">The Future of Modular Blockchains</h1>We have described the current status and challenges of modular blockchains. Modular blockchains have emerged to solve the challenges of monolithic blockchains. However, many problems must be solved to make the modular blockchain world a reality. Fast monolithic blockchains still exist. New solutions may emerge in the direction of integrating separate functions, contrary to the modularization trend of today. Tané is actively working in Crypto infrastructure and has a strong network in Japan. We would be happy to talk with you if you are interested in us. Special Thanks to <a style="font-size: 0.75em" href="https://twitter.com/tksohishi" target="_blank" rel="noopener noreferrer">Takeshi Ohishi</a> References 1 <a style="font-size: 0.75em" href="https://celestia.org/learn/sovereign-rollups/an-introduction/" target="_blank" rel="noopener noreferrer">An introduction to sovereign rollups</a> 2 <a style="font-size: 0.75em" href="https://maven11.substack.com/p/the-modular-world" target="_blank" rel="noopener noreferrer">The Modular World</a> 3 <a style="font-size: 0.75em" href="https://multicoin.capital/2023/08/15/the-hidden-costs-of-modular-systems/" target="_blank" rel="noopener noreferrer">The Hidden Costs of Modular Systems</a> 4 <a style="font-size: 0.75em" href="https://medium.com/@lagrangelabs/interoperability-for-modular-blockchains-the-lagrange-thesis-41352740914f" target="_blank" rel="noopener noreferrer">Interoperability For Modular Blockchains: The Lagrange Thesis</a> 5 <a style="font-size: 0.75em" href="https://polymerlabs.medium.com/the-multi-hop-ibc-upgrade-will-take-ibc-to-ethereum-and-beyond-b4bee43523e" target="_blank" rel="noopener noreferrer">The Multi-hop IBC upgrade will take IBC to Ethereum and beyond</a> Disclaimer: This post is for general information purposes only. It does not constitute investment advice or a recommendation or solicitation to buy or sell any investment. It should not be used to evaluate the merits of making any investment decision. It should not be relied upon for accounting, legal or tax advice or investment recommendations. This post reflects the current opinions of the authors. It is not made on behalf of Tané or its affiliates and does not necessarily reflect the opinions of Tané, its affiliates or individuals associated with Tané. The opinions reflected herein are subject to change without being updated.

Modular Blockchain Thesis

モジュラー・ブロックチェーン（Modular Blockchain）の可能性

Takeshi Ohishi, co-founder and head of DAO governance, appeared as a guest on the 24th special episode of <a href="https://open.spotify.com/show/5SuDQX78ohjv2qYglOpVaQ" target="_blank" rel="noopener noreferrer">EXODUS</a>, a podcast dedicated to blockchain/crypto assets/DAO/web3, respectively. In this episode, Takeshi talked about DAO Governance. Please click on the links below to listen to them. <a href="unsafe:[object Object]" target="_blank" rel="noopener noreferrer">エクソダス extra.24</a> <a href="unsafe:[object Object]" target="_blank" rel="noopener noreferrer">「企業としてのDAOへの貢献とは？〜TwitterやSmartNewsからWeb3領域に転身した起業家に訊く」</a> <img src="https://images.microcms-assets.io/assets/c5cc6f57e5fa46ba91922af7aa7fc644/3e7effbfddb5412f88f1ff8aa0585733/F4nDecpbgAAlxg-.jpeg" alt="">

ブロックチェーン/暗号資産/DAO/web3専門Podcastである<a href="https://open.spotify.com/show/5SuDQX78ohjv2qYglOpVaQ" target="_blank" rel="noopener noreferrer">EXODUS</a>のextra回第24回に、Tanéの大石がゲストとして出演しました。 Tanéの視点から見たDAOガバナンスについて語っています。 以下のリンクからお聞きいただけます。 <a href="https://twitter.com/ysksdr/status/1696102396433445006" target="_blank" rel="noopener noreferrer">エクソダス extra.24</a> <a href="https://twitter.com/ysksdr/status/1696102396433445006" target="_blank" rel="noopener noreferrer">「企業としてのDAOへの貢献とは？〜TwitterやSmartNewsからWeb3領域に転身した起業家に訊く」</a> <img src="https://images.microcms-assets.io/assets/c5cc6f57e5fa46ba91922af7aa7fc644/3e7effbfddb5412f88f1ff8aa0585733/F4nDecpbgAAlxg-.jpeg" alt="">

Takeshi Ohishi talked about DAO Governance on Podcast EXODUS

Tanéの大石がPodcastエクソダスにゲスト出演、DAOガバナンスについて解説

Ikuma Mutobe, co-founder and managing partner, appeared as a guest on the 22nd special episode of <a href="https://open.spotify.com/show/5SuDQX78ohjv2qYglOpVaQ" target="_blank" rel="noopener noreferrer">EXODUS</a>, a podcast dedicated to blockchain/crypto assets/DAO/web3. Ikuma talked about MEV, including a basic overview, key players, issues, etc. Please click on the links below to listen to them. <a href="https://twitter.com/ysksdr/status/1688489630013042689" target="_blank" rel="noopener noreferrer">エクソダス extra.22</a> <a href="https://twitter.com/ysksdr/status/1688489630013042689" target="_blank" rel="noopener noreferrer">「ブロックチェーンのMEV（最大抽出可能価値）とは？」</a> <img src="https://images.microcms-assets.io/assets/c5cc6f57e5fa46ba91922af7aa7fc644/6e7c706b2e4b44978b12a1e9fc9434db/F2670wFXIAAGkHA.jpeg" alt="">

ブロックチェーン/暗号資産/DAO/web3専門Podcastである<a href="https://open.spotify.com/show/5SuDQX78ohjv2qYglOpVaQ" target="_blank" rel="noopener noreferrer">EXODUS</a>のextra回第22回に、Tanéの代表の六人部がゲストとして出演しました。 MEVの概要、課題、今後の展開等について話しました。 以下のリンクからお聞きいただけます。 <a href="https://twitter.com/ysksdr/status/1688489630013042689" target="_blank" rel="noopener noreferrer">エクソダス extra.22</a> <a href="https://twitter.com/ysksdr/status/1688489630013042689" target="_blank" rel="noopener noreferrer">「ブロックチェーンのMEV（最大抽出可能価値）とは？」</a> <img src="https://images.microcms-assets.io/assets/c5cc6f57e5fa46ba91922af7aa7fc644/6e7c706b2e4b44978b12a1e9fc9434db/F2670wFXIAAGkHA.jpeg" alt="">

Ikuma Mutobe talked about MEV on Podcast EXODUS

代表の六人部がPodcast EXODUSにゲスト出演、MEVについて解説

NOT A HOTEL offers a "new lifestyle" where you can switch between home (villa) and hotel with an app. The rooms can be controlled by IoT. The app supports new lifestyles with a variety of technologies, including chat functions and hotel revenue management.

NOT A HOTEL は自宅(別荘)とホテルをアプリで切り替えられる「あたらしい暮らし」を提供します。室内はIoTでコントロール可能。チャット機能やホテルの収益管理まで様々なテクノロジーであたらしい暮らしをサポートします。

NOT A HOTEL

Senspace is a virtual goods brand building one-of-kind experiences powered by blockchain-based, digital ownership.

Senspaceは、ブロックチェーンに基づくデジタルオーナーシップを武器に、特別な体験を構築するバーチャルグッズのブランドです。

Senspace

UnUniFi is a DeFi Platform for NFTs with NFT-Fi tools and an Interchain Yield Aggregator, built via L1 app specific blockchain in the Cosmos Network.

UnUniFiは、NFT-Fi機能とInterchain Yield Aggregatorを備えたCosmos Network上の目的特化Layer1 Blockchainです。


UnUniFi

Co-Founder, Managing Partner

共同創業者, マネージーングパートナー

共同創業者, マネージングパートナー

Co-Founder, Research Engineer

共同創業者, リサーチエンジニア

Co-Founder, Design Engineer

共同創業者, デザインエンジニア

FastLane is an easy to integrate protocol that rewards participating validators for protecting the health of the Polygon blockchain. They will expand their solutions to other ecosystem such as Ethereum.

FastLaneは、Polygonブロックチェーンの健全性を守るために参加するバリデーターへのインセンティブを付与可能なプロトコル。FastLaneは、今後、Ethereumのような他のエコシステムにもMEVソリューションを展開していく予定である。

FastLane

Catalyst is a decentralized protocol that serves as a permissionless liquidity layer for the modular future of blockchain. It enables seamless connections and asset swaps between different blockchains, such as Ethereum, Cosmos, and other emerging chains.

Catalystは、ブロックチェーンのモジュール化された未来のためのパーミッションレスな流動性レイヤーとして機能する、分散型プロトコル。Ethereum、Cosmos、その他の新興チェーンなど、異なるブロックチェーン間のシームレスな接続と資産交換を可能にします。

Catalyst

Intmax is a Rollup project that will evolve Ethereum into something that can be used by online citizens worldwide as infrastructure principally for payments, but also for other forms of internet-native ownership through NFTs and community-governed tokens.

Intmaxは、Ethereumを世界中のオンライン市民が、主に決済のためのインフラとして利用できるものに進化させるRollupプロジェクト。NFTやコミュニティが管理するトークンを通じて様々な形態のインターネットネイティブな所有権にも対応します。

Intmax

Polymer’s modular IBC design allows for chains to easily integrate IBC transport and become interoperable across all ecosystems in a decentralized manner.

Polymer combines a novel consensus engine, zero knowledge technology, and modular IBC to create the most efficient and scalable IBC routing solution. Polymer is the first chain dedicated to the routing of IBC packets.

PolymerのモジュラーIBC設計により、チェーンはIBCトランスポートを容易に統合し、分散型方式ですべてのエコシステムで相互運用できるようになります。

Polymerは、新しいコンセンサスエンジン、ゼロ知識技術、モジュラーIBCを組み合わせ、最も効率的でスケーラブルなIBCルーティングソリューションを構築しました。Polymerは、IBCパケットのルーティングに特化した最初のチェーンです。

Crypto Builders Incubator

Nurture the soil for Web3.

Writing

The Importance of Shared Sequencer

Modular Blockchain Thesis

Takeshi Ohishi talked about DAO Governance on Podcast EXODUS

Ikuma Mutobe talked about MEV on Podcast EXODUS

Portfolio

Contribution

Team

Co-Founder, Managing Partner

Ikuma Mutobe

Co-Founder, Managing Partner

Takeshi Ohishi

Co-Founder, Research Engineer

Dongri Jin

Co-Founder, Design Engineer

Takaya Deguchi

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