# Monolithic vs Modular Blockchains

## **Core Concepts** <a href="#hiqkc9g2qo59" id="hiqkc9g2qo59"></a>

Any blockchain must perform four essential functions:

1. **Execution**: Processing transactions and updating state
2. **Settlement**: Verifying proofs and resolving disputes between chains
3. **Consensus**: Agreeing on transaction ordering
4. **Data Availability**: Ensuring transaction data is published and accessible

Traditional monolithic blockchains handle all these functions in a single system. This design creates inherent limitations since optimizing for one function often requires trade-offs in others.&#x20;

The [modular approach](https://celestia.org/learn/intermediates/modular-and-monolithic-blockchains/) pioneered by Celestia separates these four functions into specialized layers that can be optimized independently.

## Celestia's Modular Framework

<figure><img src="/files/sSz1UUSs70ldCKRFVymb" alt=""><figcaption></figcaption></figure>

Celestia provides a base layer of consensus and data availability to allow settlement and execution to operate in their own layers.

This arrangement offers two critical advantages:&#x20;

* First, each layer can be optimized specifically for its function rather than trying to balance competing requirements. This leads to significant throughput improvements.
* Second, the same settlement and data availability layers can support multiple execution layers (rollups) simultaneously, which creates an ecosystem of specialized chains rather than requiring each application to compete for resources on a single chain.


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