According to Kenny Li, co-founder and COO of Manta Pacific, only a few out of the current 44 active Ethereum layer-2 (L2) blockchains will survive in the next five years. While there are currently 44 active Ethereum L2 networks with a combined total value locked (TVL) of $36.92 billion, Li believes that the future is more promising for “modular” blockchains like Manta, Celestia, and Cosmos. However, critics argue that this distinction is merely a “marketing stunt” and that a network’s success is not determined by its approach to development and scalability.
Li compares the flood of new L2s on the Ethereum network to past forks of the Bitcoin and Ethereum networks, none of which have survived. He explains that these forks took existing technology and made minor changes to create something supposedly better. He cites examples such as Bitcoin Cash and Bitcoin SV as unsuccessful forks of Bitcoin, and EOS and NEO as unsuccessful attempts to position themselves as “Ethereum killers” by offering alternative environments to the Ethereum ecosystem.
Li believes that the central issue with these forks is that they were all built “monolithically,” meaning they didn’t allow for quick integration and adoption of new technology. He asserts that Ethereum, with its modular approach, has become the dominant player in the space.
Modular blockchains are networks that export their primary tasks to external blockchains, allowing for greater design flexibility. In contrast, monolithic blockchains handle all tasks within a single layer of the network. Austin Federa, head of strategy at the Solana Foundation, dismisses the debate between modular and monolithic as a “marketing stunt” introduced by Celestia. He argues that the distinction is not natural or organic.
Li claims that Manta, launched on Jan. 18, is the “first and largest” modular L2 network on Ethereum. However, some, including Ethereum co-founder Vitalik Buterin, would argue that Manta’s use of Optimism’s OP stack and Celestia for data availability makes it a “validium” rather than a genuine L2 network.
Li emphasizes that Manta takes a modular approach, allowing them to adapt to changing demands by incorporating different technologies. Federa, on the other hand, believes that the distinction between monolithic and modular networks is not significant and that they are just different software architecture choices.
In conclusion, while Li believes in the future of modular blockchains like Manta, Celestia, and Cosmos, critics argue that the modular vs. monolithic debate is a marketing tactic and not a meaningful distinction.