Need to know about Modular blockchains:
The idea of a modular blockchain is that it can specialize in a couple of functions instead of trying to do everything. A more scalable and customizable system can be created by combining multiple specialized blockchains.
The main advantages of modular blockchain include better scalability, flexibility for development teams, and efficiency in transaction processing. Modular blockchain also comes with some challenges such as high complexity and potential security risks.
Celestia: The First Modular Blockchain Network
OKX Ventures, the venture capital subsidiary of notable cryptocurrency exchange and Web3 technology firm OKX, declared its involvement in the Series B funding phase of Celestia Lab today. Celestia stands as the pioneering modular blockchain network which allows developers to utilize its platform as a foundational layer for consensus and data processes.
Developers have the liberty to select a virtual machine, such as Ethereum, Solana, or zero-knowledge roll-ups among other compatible smart contract execution layers, to create and launch their distinct blockchain networks.
This notion diverges from the earlier blockchain infrastructure generations where Layer-1 chains were responsible for consensus, data operations, and execution collectively, a setup referred to as ‘monolithic’ by Celestia.
Developers leveraging Celestia as a primary layer for rolling out modular blockchains can reap several advantages including elevated scalability, shared security fostering interoperability amidst applications, and the flexibility to choose among execution environments like Ethereum and Solana.
OKX Ventures underlined its continual support for the crypto sector by funding promising projects like Aark Digital, dappOS, and 0xScope, as detailed in its September report. These ventures aim to address different crypto challenges, with Aark Digital focusing on enhancing decentralized exchange platforms, dappOS improving user experience in decentralized applications, and 0xScope democratizing data access across Web2 and Web3.
These strategic investments by OKX Ventures are in tandem with its recent backing of Celestia Lab’s modular blockchain technology in the Series B funding round, reinforcing its dedication to fueling innovation and growth in the cryptocurrency ecosystem.
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