Fed up with all the talk about Layer 2 solutions? Frustrated by token airdrops that go nowhere? It’s time to move past the outdated Layer 2 hype and turn our attention to the latest sensation in the blockchain space: Monad crypto!
Let’s take a closer look at what makes this new Layer 1 blockchain stand out.
What Is Monad?
Aligned with the ultimate goal of Layer 2, Monad aims to create an EVM compatible high-frequency trading chain. By leveraging the concept of Parallel Execution, it allows GameFi or other dApps requiring high-frequency transactions to interact with the EVM at a very high speed.
（Source: Monad Communtiy）
How Does Monad Work
What is the concept of Parallel Execution
Let’s pick a laundry day for example: The complete laundry process involves four steps:
1. Washing machine cleaning
2. Dryer drying
3. Folding clothes
4. Placing in the closet
Assuming each step takes one hour, completing four sets of laundry would take 16 hours (as shown in the diagram below)
（Source: Prof. Lois Hawkes, FSU）
What if we could handle the process simultaneously through a pipeline? When one step finishes, the next step would start at the same time, eliminating waiting time. This is the concept of Parallel Execution. (as shown in the diagram below)
Pipelining gets work done more efficiently by utilizing multiple resources simultaneously.
Who else adopted the Parallel Execution?
Since Parallel Execution sounds so impressive, who else has adopted this technology?
The existing EVM uses Sequential Computing, but Parallel Execution technology is not new. The Solana Virtual Machine (SVM) uses this technology to improve blockchain efficiency (as the diagram below).
(Source: Saurabh Deshpande)
All types of transactions on the EVM are queued together and wait for execution, whereas the SVM can process different categories of transactions (NFTs, RWAs, DEXs, etc.) in parallel. Additionally, chains like Sui and Aptos also implemented Parallel Execution technology from Day 1.
What Is Unique About Monad
Parallel Execution technology isn’t new, so what sets Monad apart? Unlike Solana, Aptos, or Sui, Monad is EVM-compatible, meaning all the dApps on Ethereum can easily be deployed on Monad. This EVM compatibility is made possible by Monad’s unique feature: the Monad Database!
The Monad Database is a custom-built system for storing blockchain data, supporting Parallel Execution on EVM and achieving an impressive 10,000 transactions per second (TPS).
The Monad Database is specifically designed to optimize how Ethereum’s Merkle tree data is stored. Building this database from scratch is a complex and challenging task, but once complete, it holds great potential for future development!
Features of Monad
Let’s review what makes Monad unique:
- L1 EVM-Compatible
- Parallel Execution
- 10K TPS
In addition to the above features, Monad also has an important characteristic: Community Meme Culture.
（Source: Monad Communtiy）
Monad regularly holds Memes of the Week on X, where they collect various creations about Monad from the community. Currently, this event has reached its 46th week. If you come across some strange purple animals on X, it’s most likely the Monad community “preaching”. They even have their own GM slogan: “GMONAD”.
This marketing approach is reminiscent of Solana, known for its meme-driven strategies that built a large and loyal community.
Monad is about to experience its first bull market since announcing, and its future performance is something to look forward to!
Quick View of the Co-Founder & CEO
Keone Hon, who was a quant on the high-frequency trading team at Jump Trading, recognized a need for a blockchain that could handle high-frequency trading based on the challenges he encountered at the company.
(Source: Bankless)
Keone’s decision to redesign the EVM, even with the popularity of L2 solutions, is commendable. He believed that improving the EVM execution stack was essential. By implementing optimizations like parallel execution, a custom state database, and pipelined execution, Monad aims to better utilize hardware, resulting in a more efficient and decentralized system.
VCs Fund Monad
In April 2024, Monad Labs completed a $225 million funding round, led by Paradigm with participation from Electric Capital and Greenoaks. This marks the largest cryptocurrency financing round of 2024 so far, bringing the company’s valuation to $3 billion.
In December 2023, Georgios Konstantopoulos, CTO of leading VC Paradigm, praised the prospects of “parallel EVMs” highly. He believed that 2024 would be the year for the “parallel EVM” concept and mentioned Monad as the leading project in this area.
Here’s the thing: unlike many blockchains that are flush with cash but short on real impact, Monad isn’t just well-funded—it’s also packed with powerful applications that have attracted investments from top-tier institutions. Some standout projects including Kintsu, Kuru, Monad Pad, and aPriori.
Potential Airdrops
Okay! After diving into all this information, it’s clear that you’re keen on understanding Monad and how to potentially earn an airdrop! 😄
Currently, Monad’s mainnet and testnet are not live yet, so the most common ways to receive airdrops involve community engagement or interaction with partner projects.
Follow Monad so you don’t miss out!
Interact with Ecosystem Projects
Liquidity Protocol – Elixir
Elixir is an on-chain orderbook liquidity protocol. By integrating with Monad’s ecosystem, Elixir allows users to provide liquidity to various currency pairs. It aims to bring a layer of permanent liquidity to Monad, benefiting the entire ecosystem.
DEX – Swaap
Swaap Finance uses an AMM model, allowing users to trade without a traditional orderbook. It combines oracles and dynamic spread mechanisms to provide more accurate market prices and adjust spreads based on market conditions. This model adjusts asset allocation and trading fees in liquidity pools, offering sustainable returns to liquidity providers.
Conclusion
Having been in the crypto space for many years, you’re certainly familiar with how market funds flow over time into different sectors: DeFi, L2, L1, NFT, GameFi, etc. However, new narratives are always a good thing, as they can attract more attention from Web2 and help expand the Web3 sector further. Let’s look forward to Monad’s performance in the future!