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the-modular-blockchain-thesis-explained
Blog

The Future of Blockchain UX is Tied to Execution Layer Design

Generic, congested L1s cannot deliver premium UX. Instant finality, predictable fees, and seamless composability are products of execution layers purpose-built for specific applications and user intents.

introduction
THE EXECUTION BOTTLENECK

Introduction

Blockchain user experience is no longer constrained by consensus or data availability, but by the rigid design of execution layers.

Execution layer design dictates UX. The consensus layer (e.g., Ethereum L1) provides security and finality, but the execution environment determines transaction speed, cost, and complexity for users.

Smart contract wallets are a patch. ERC-4337 and AA wallets like Safe and Biconomy abstract gas, but they work around the execution model, not with it, adding overhead.

The future is specialized execution. Monolithic chains force all apps into one VM. The shift is towards app-chains, rollups, and parallelized VMs like Solana and Monad that optimize for specific workloads.

Evidence: Arbitrum processes over 1 million transactions daily, but its single-threaded EVM limits throughput, creating the demand for Ethereum L2s with custom execution like zkSync and Starknet.

thesis-statement
THE EXECUTION IMPERATIVE

The Core Argument: UX is an Execution Feature, Not an Afterthought

User experience is a direct output of execution layer architecture, not a separate design challenge.

UX is an architectural output. The user's journey from intent to outcome is a sequence of execution steps. A protocol's architecture dictates this sequence, making UX a deterministic feature of its core design, not a front-end veneer.

Abstracted execution defines modern UX. Protocols like UniswapX and CowSwap shift complexity from the user to the solver network. The user sees a simple swap; the execution layer orchestrates a multi-chain auction across Across, 1inch, and private market makers.

Intent-based architectures are the endpoint. Frameworks like Anoma and SUAVE formalize this by treating user intents as the primitive. The execution layer's job is to discover and fulfill the optimal path, rendering manual steps obsolete.

Evidence: The rise of gas sponsorship and account abstraction (ERC-4337) proves the point. These are not UI tweaks but execution-layer modifications that directly absorb complexity, moving the burden from the user to the protocol.

ARCHITECTURE DECISION MATRIX

Execution Layer Showdown: Monolithic vs. Modular

A first-principles comparison of how execution layer design dictates user experience, developer flexibility, and long-term scalability.

Feature / MetricMonolithic (e.g., Solana, Sui)Modular - Sovereign Rollup (e.g., Celestia, Eclipse)Modular - Smart Rollup (e.g., Arbitrum, OP Stack)

State Execution & Settlement

On same monolithic chain

Sovereign: Self-settles, posts data to DA

Settles to a parent L1 (e.g., Ethereum)

Throughput (Max Theoretical TPS)

50,000-65,000

Limited only by DA layer bandwidth

Governed by parent L1 gas limits

Time-to-Finality (User Experience)

< 1 second

~2 seconds (DA attestation) + rollup logic

~12 seconds (L1 block time) + challenge period

Sequencer Censorship Resistance

✅ (Forced inclusion via DA)

✅ (via L1 escape hatch)

Upgrade Sovereignty

Governance or hard fork

✅ Full (Sovereign chain)

❌ Requires L1 governance (e.g., Ethereum timelock)

Developer Stack Flexibility

Single VM (e.g., SVM, MoveVM)

Any VM (EVM, SVM, MoveVM, etc.)

EVM or specific alt-VM (e.g., Stylus, FuelVM)

Trust Assumption for Data

Validators

DA Layer Security (e.g., Celestia, EigenDA)

Ethereum Consensus

Avg User Tx Cost at Scale

$0.001 - $0.01

< $0.001 (optimistic projection)

$0.05 - $0.20 (includes L1 DA cost)

deep-dive
THE UX IMPERATIVE

Deep Dive: How Specialized Execution Layers Win

User experience is not a front-end problem; it is a direct consequence of execution layer architecture.

Specialization enables atomic complexity. A monolithic chain forces every dApp to compete for the same, general-purpose compute. A specialized rollup, like dYdX for perpetuals or Immutable for gaming, optimizes its virtual machine and data structures for a single use case, delivering order-of-magnitude efficiency gains.

Intent-based flows abstract execution. Users express a desired outcome (e.g., 'swap X for Y at best price'), not a transaction sequence. Protocols like UniswapX and CowSwap solve this by outsourcing routing to a network of solvers, making cross-chain swaps feel like a single click.

Parallel execution is non-negotiable. Sequential processing, as seen in Ethereum's EVM, creates artificial bottlenecks. Solana's Sealevel and Monad's parallel EVM demonstrate that concurrency is the only path to scaling state access, which directly translates to lower latency and cost for users.

Evidence: Arbitrum Stylus, which supports WebAssembly alongside the EVM, allows developers to write high-performance code in Rust, reducing gas costs for complex logic by over 10x compared to Solidity equivalents.

counter-argument
THE EXECUTION BOTTLENECK

Counter-Argument: The Liquidity & Composability Trade-Off

Optimizing for user experience by abstracting execution creates a fundamental conflict with on-chain liquidity and composability.

Intent-based architectures fragment liquidity. Protocols like UniswapX and CowSwap route orders off-chain to solvers, bypassing the public mempool. This improves price execution but removes the transaction from the shared liquidity pool of the underlying DEX, creating a liquidity silo.

Composability requires a shared state. A user's solver-executed swap on UniswapX is an atomic black box to other smart contracts. This breaks the fundamental promise of DeFi legos, as downstream protocols cannot build upon or react to that specific execution event.

The trade-off is execution venue vs. state. A transaction on a shared rollup like Arbitrum is a composable state update. An intent fulfilled via Across Protocol or LayerZero is a finalized outcome. The industry must choose between optimized, opaque flows and transparent, programmable ones.

Evidence: The MEV supply chain demonstrates this. Solvers in intent systems are centralized searchers with private order flow, replicating TradFi's opaque market structure. This is the direct cost of abstracting complexity from the end-user.

protocol-spotlight
EXECUTION IS THE NEW FRONTIER

Protocol Spotlight: Builders Betting on Specialization

General-purpose L1s are hitting UX ceilings. The next wave of adoption will be driven by execution layers purpose-built for specific transaction intents.

01

The Problem: Universal Chains Are a UX Compromise

Monolithic L1s force all apps into a one-size-fits-all execution model, creating predictable bottlenecks.\n- Latency vs. Finality Trade-off: Users wait for slow, expensive block confirmations for simple swaps.\n- Resource Contention: An NFT mint can congest the network for a high-frequency DEX.\n- Cost Inefficiency: Every app pays for security and features they don't need.

~12s
Avg. Block Time
$10+
Peak Swap Cost
02

The Solution: Intent-Centric Co-Processors (e.g., Espresso, RISC Zero)

Offload complex, specialized computation from the base layer to dedicated, verifiable co-processors.\n- Prover Markets: Projects like RISC Zero and Succinct enable trustless execution of heavy compute (ML, gaming logic) with a ZK proof.\n- Shared Sequencers: Espresso Systems provides fast, MEV-resistant pre-confirmations, decoupling execution speed from L1 finality.\n- Modular Cost Model: Pay only for the specific compute you use, not the whole virtual machine.

1000x
Cheaper Compute
<1s
Pre-Confirmation
03

The Solution: Application-Specific Rollups (e.g., dYdX, Lyra)

Build a sovereign execution environment optimized for a single application's state model and transaction flow.\n- Tailored State Machine: A perpetual DEX like dYdX doesn't need an EVM; its custom chain only processes orderbook logic.\n- Predictable Performance: Isolated from network noise, guaranteeing sub-second latency and sub-cent fees for users.\n- Sovereign Upgrades: The app team controls the stack, enabling rapid iteration without governance bottlenecks of general-purpose L2s like Arbitrum or Optimism.

~500ms
Trade Latency
$0.001
Avg. Fee
04

The Solution: Solana's Parallel Execution (e.g., Sealevel)

Maximize hardware utilization by processing non-conflicting transactions simultaneously, rather than sequentially.\n- Runtime-Level Parallelism: The Sealevel VM identifies independent transactions (e.g., swapping different token pairs) and executes them in parallel.\n- Hardware Scaling: Throughput scales with cores, not just clock speed, enabling 50k+ TPS for a diverse app ecosystem.\n- Implicit Benefit: Every app gets faster without needing its own chain, preserving composability. The model is now being emulated by Monad and Aptos.

50k+
Peak TPS
~400ms
Slot Time
05

The Problem: Cross-Chain UX is Still a Jigsaw Puzzle

Users manually bridge assets, sign multiple transactions, and manage gas across chains—a fatal UX barrier.\n- Fragmented Liquidity: Capital is trapped in silos, reducing efficiency for protocols like Aave and Uniswap.\n- Security Theater: Users are exposed to bridge hacks (Wormhole, Ronin) and must trust new intermediaries.\n- Cognitive Overload: Non-crypto-native users cannot be expected to understand chains, bridges, and gas tokens.

$2.5B+
Bridge Hacks (2022)
5+
Avg. Steps
06

The Solution: Intents & Shared Sequencing (e.g., UniswapX, Across)

Abstract chain boundaries by letting users declare a desired outcome (an 'intent'), not a transaction path.\n- Solver Networks: Protocols like UniswapX and CowSwap outsource routing to competitive solvers who find the best cross-chain path.\n- Unified Liquidity: Aggregators like Across use a single canonical bridge pool, optimizing for speed and cost.\n- Single Transaction UX: The user signs once; the solver network handles bridging, swapping, and delivery. This is the core thesis behind Anoma and Essential.

-20%
Better Price
1-Click
User Action
takeaways
EXECUTION LAYER FRONTIER

Key Takeaways for Builders and Investors

The next wave of user adoption will be won by protocols that abstract away blockchain complexity, not by those with the highest theoretical TPS.

01

The Problem: Gas Fees Are a UX Tax

Users must hold native tokens, estimate volatile costs, and approve every transaction. This creates massive onboarding friction and cognitive overhead.

  • ~40% of new users abandon wallets during first gas payment.
  • Sponsored transactions via ERC-4337 account abstraction can onboard the next 100M users.
  • Build for gasless entry points; monetize via application-layer fees.
~40%
User Drop-off
ERC-4337
Standard
02

The Solution: Intent-Based Architectures

Shift from specifying how (complex transactions) to declaring what (desired outcome). Let specialized solvers compete to fulfill user intents optimally.

  • UniswapX and CowSwap demonstrate ~5-10% better prices via off-chain order flow.
  • Across and layerzero use intents for cross-chain liquidity.
  • Future DEXs will be solver marketplaces, not AMM curves.
5-10%
Price Improvement
Solver-Net
Architecture
03

The Problem: Wallet Fragmentation

Every new chain requires new RPCs, bridges, and gas tokens. The multi-chain future is a UX nightmare for non-degens.

  • Managing 10+ wallets across ecosystems is untenable.
  • Universal Accounts (e.g., NEAR, ICP) and chain abstraction (e.g., Particle Network) are becoming mandatory.
  • The winning stack will make the underlying chain invisible.
10+
Wallets Needed
Chain-Abstraction
Mandatory
04

The Solution: Parallel Execution & Local Fee Markets

Serial execution (Ethereum) creates network-wide congestion. Parallel execution (Sui, Aptos, Solana) with localized state access enables true scalability.

  • Solana achieves ~50k TPS for simple payments via Sealevel runtime.
  • Sui's object-centric model allows sub-second finality for independent transactions.
  • Build apps with contention-free state design to leverage these gains.
50k TPS
Peak Throughput
Sub-Second
Finality
05

The Problem: MEV as a User Tax

Maximal Extractable Value isn't just a validator profit; it's a direct cost to end-users via front-running and worse prices.

  • ~$1B+ annually extracted from users via DEX arbitrage alone.
  • Creates unpredictable and unfair execution.
  • Applications must internalize MEV management or users will flee.
$1B+
Annual Extraction
User Tax
Primary Impact
06

The Solution: Encrypted Mempools & Proposer-Builder Separation

Hide transaction content until inclusion (e.g., Shutterized rollups) and separate block building from proposing to break MEV cartels.

  • Ethereum's PBS (proposer-builder separation) via MEV-Boost commoditizes block building.
  • Flashbots SUAVE aims to be a decentralized, competitive block-building market.
  • Integrate fair ordering or threshold encryption at the app-layer.
PBS
Ethereum Standard
SUAVE
Future Market
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Execution Layer Design is the Future of Blockchain UX | ChainScore Blog