Monad: A Breakdown of the Madness
Jul 7, 2025
TL/DR
High-Performance EVM Layer 1: Monad is an EVM-compatible Layer 1, engineered for high speed (10,000 TPS) and scalable decentralization.
Addressing EVM Bottlenecks: It directly tackles EVM inefficiencies and high costs through deep, stack-wide optimizations.
Core Technical Innovations: Performance is driven by Optimistic Parallel/Asynchronous Execution, custom MonadBFT consensus, and an optimized MonadDB.
Unique Execution Model: Unique to Monad is parallel execution and superscalar pipelining within the EVM for concurrent, efficient processing.
Robust Architecture: A robust, modular node architecture with RaptorCast ensures fast transaction processing and reliable state management.
Strong Ecosystem Momentum: Strong ecosystem momentum includes a public testnet, $244M in funding, and strategic partnerships like Circle's USDC integration.
Introducing Monad
The Monad blockchain is pushing the boundaries of what's possible in the world of decentralized applications. Built for speed and scalability, Monad is an Ethereum-compatible Layer 1 that boasts an impressive 10,000 transactions per second. This is achieved through key innovations like MonadBFT, Asynchronous Execution, Optimistic Parallel Execution and MonadDB, which optimize performance without sacrificing decentralization. What truly sets Monad apart is its seamless compatibility with the existing Ethereum ecosystem. Developers can effortlessly migrate their dApps, utilize familiar tools like Hardhat and MetaMask, and even leverage existing analytics platforms like Etherscan. This ensures a smooth transition and unlocks a world of possibilities for both builders and users alike. Below, we'll explore Monad and cover key concepts to bring you a comprehensive understanding of the Network.
Understanding The Madness
To start, we need to understand that 90% of all capital in DeFi is in EVM applications. This brings us to the problem – transactions on most blockchains are inefficient/slow. For most blockchains, block creation requires consensus and execution of ordered transactions, which are interdependent. This intertwined process takes time and resources, leading to slow and costly block creation.
The industry was slow to modify and optimize the Virtual Machine which then led to minor improvements to overall throughput generally. Different consensus mechanisms were able to support shorter block times and somewhat higher gas limits (i.e. execution budgets); the combination of these factors resulted in an approximate 5x improvement in throughput for the EVM blockchains relative to Ethereum. While this sounds good, according to Monad, this approach yielded a very low baseline of 10 TPS. In essence, It's extremely expensive to scale decentralization this way. To run nodes, this typically requires powerful RAM to run, with high upfront costs to even begin participating in the network, making it really difficult to scale decentralization.
In order to make EVM transactions more efficient, deep optimization and transformation is needed across all levels of the tech stack. From the database, to the virtual machine, to the consensus and networking layers — low-level optimizations are required at every step to allow “consumer-grade hardware” to bring extraordinary performance while maintaining decentralization. This is where Monad comes in.
Monad is about speed, without the sacrifice of decentralization. This was the key concern that led them to developing their network.
Key Features of Monad
Optimistic Parallel Execution
Monad efficiently processes blockchain transactions by executing them in parallel using multiple virtual machines, predicting dependencies to optimize scheduling and merging results sequentially to ensure correct execution order while maximizing resource utilization.
Asynchronous Execution
Monad execution begins on a block after consensus is complete, running in parallel to the next block’s consensus.
MonadBFT
Monad has its own custom BFT mechanism derived from HotStuff, optimized to reduce communication phases from three to two, enhancing efficiency. Its responsive design allows rounds to progress at actual network latency, an improvement to performance.
MonadDB
This is Monad’s custom state database that enhances blockchain performance by optimizing storage and access of ‘Merkle Patricia Trie’ data, enabling high-performance parallel access which is crucial for Monad's parallel execution capabilities. MonadDB allows you to keep most of the state on SSD instead of RAM. This reduces RAM requirements, costs and allows consumer-grade hardware to participate in the network.
What Makes Monad Stand Out?
Monad makes exceptional performance possible by introducing parallel execution and superscalar pipelining to the Ethereum Virtual Machine.
Parallel execution is the practice of utilizing multiple cores and threads in order to execute work in parallel while still committing the results in the original order on the ledger. Although transactions are executed in parallel, from the user and developer’s perspective, they are executed serially; the result of a series of transactions is always the same as if the transactions had been executed one after another. Saving precious time and resources.
Superscalar pipelining is the practice of creating stages of work and executing the stages in parallel. In the example of doing four loads of laundry, the basic methodology is to wash, dry, fold and store the first load of laundry before starting on the second one. The pipelined strategy is to start washing load 2 when load 1 goes into the dryer. Pipelining gets work done more efficiently by utilizing multiple resources simultaneously.
Monad’s Technical Overview
First, we have a Monad node, which is a computer running the network's software. This node has three main parts. We have monad-rpc, which is like the front desk, handling all your interactions, such as when you submit a transaction. Then there's monad-bft, the consensus engine. This is where all the network's computers agree on the order of transactions and create new blocks. Finally, monad-execution is the powerhouse that processes these transactions and updates the blockchain's record, or state.
When you send a transaction, monad-rpc directs it to an upcoming block builder. Monad's consensus, MonadBFT, works by proposing blocks in a continuous pipeline, allowing many operations to happen at once. To share these new blocks quickly across the network, even with many computers involved, Monad uses a special messaging system called RaptorCast. It efficiently sends out block information so everyone stays in sync.
What's unique is how Monad handles execution. The network actually agrees on a block of transactions before running them. This is called asynchronous execution. It allows the system to use the entire time available for a block to process transactions, significantly increasing its capacity. Monad also employs techniques like speculative execution, where nodes optimistically execute transactions in proposed blocks and optimistic parallel execution, which processes multiple transactions simultaneously. These are supported by MonadDb, a custom database designed for fast data access. This layered approach ensures Monad delivers high performance while preserving its decentralized nature.
Monad News Bulletin
Here’s a quick recap of things you may have missed in regards to Monad:
Circle and Monad Foundation have announced that USDC, the $60 billion stablecoin, will go live on the Monad chain on day 1 of the mainnet.
Monad announced their public testnet, which launched on February 19th 2025. This allows developers and users to experience Monad's features.
Monad Labs has raised $244M in Funding to date, with a valuation of around $3B.
Bybit announced their Bybit Web3 airdrop for access to Monad’s ecosystem. The Monad Ecosystem Airdrop came with $200,000 in prizes for eligible Bybit Web3 users.
Conclusion
As we've journeyed through Monad's architecture, from its foundational optimizations to its unique execution paradigms, it's clear a new era for decentralized applications is on the horizon. We've seen how Monad tackles the inherent inefficiencies of current EVM blockchains head-on, leveraging innovations like Optimistic Parallel Execution and its custom MonadDB to redefine performance. Recent milestones, including its public testnet launch, significant funding and key partnerships like Circle bringing USDC on day one, underscore its rapid progress. Monad is set to be a pivotal Layer 1, offering unparalleled speed, scalability and seamless EVM compatibility. It aims to empower both builders and users, driving a more efficient, decentralized and accessible Web3 for all.
For more information and to stay up to date on Monad’s latest developments, visit:
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