Modular Blockchains: Execution, Settlement and Data Availability

Concept illustration of blockchain connections and cryptoassets

Which functions do modular blockchains separate?

A monolithic blockchain usually handles several functions together. Modular designs assign them to different layers so each can specialise. Common functions include execution, settlement, consensus and data availability; combinations vary by system.

Execution and settlement

An execution layer processes transactions and state updates. A settlement layer may verify proofs or resolve disputes. Settlement in technical documentation is a blockchain function, distinct from a store handing HKD cash to a customer.

Consensus and data availability

Consensus concerns agreement on the order of transactions or data. Data availability concerns whether block data have been published and can be accessed for other layers to verify. Celestia is an example focused on these functions. See its explanation of modular functions.

Scaling design does not make every transfer faster or cheaper

Dividing functions may change system performance and costs, but a personal transfer still depends on the actual network, wallet or platform and required confirmation state. A cost comparison for one project is not a fee promise for another network.

What does this mean for wallet users?

Before transferring, the immediate checks remain the asset, matching network, full address and amount. Do not send across networks just because tokens share a name. See the concepts in USDT wallets and networks. Before acting, also see transaction safety checks. When using Cash Out USDT to HKD, follow the in-store selling and transfer process to prepare for your transaction.

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