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Comparisons

Monolithic Blockchain vs. Modular Stack for AVS Deployment

A technical comparison for CTOs and protocol architects evaluating the core trade-offs between building an AVS as a monolithic chain versus a modular rollup stack. Focuses on sovereignty, cost, security, and time-to-market.
Chainscore © 2026
introduction
THE ANALYSIS

Introduction: The AVS Architecture Crossroads

Deploying an Actively Validated Service (AVS) requires a foundational choice between a unified monolithic chain and a specialized modular stack, each with distinct performance and control profiles.

Monolithic Blockchains like Solana or BNB Chain excel at providing a tightly integrated, high-throughput environment where execution, consensus, and data availability are managed as a single unit. This results in low-latency finality and simplified development, as seen in Solana's ~5,000 TPS for simple transfers and its unified tooling ecosystem (e.g., Anchor framework). The trade-off is a constrained, one-size-fits-all resource model and shared security that limits customization.

Modular Stacks (e.g., Celestia for DA, EigenLayer for restaking, Arbitrum Nitro for execution) take a different approach by decoupling core functions. This allows an AVS to optimize each layer—selecting a high-throughput DA layer or a specific VM—resulting in unparalleled flexibility and potential cost efficiency at scale. The trade-off is increased integration complexity, reliance on multiple external systems, and the operational overhead of managing cross-layer dependencies.

The key trade-off: If your priority is time-to-market, maximum raw throughput, and operational simplicity for a well-defined application, choose a Monolithic chain. If you prioritize sovereign customization, long-term scalability, and the ability to tailor security and data models (e.g., for a high-volume rollup or a novel consensus mechanism), choose a Modular stack.

tldr-summary
Monolithic vs. Modular for AVS

TL;DR: Core Differentiators at a Glance

Key architectural trade-offs for deploying an Actively Validated Service (AVS).

01

Monolithic: Unified Simplicity

Single-Stack Integration: Execution, consensus, and data availability are bundled (e.g., Ethereum L1, Solana). This means faster initial deployment and simpler security modeling for your AVS. Ideal for teams prioritizing time-to-market over long-term flexibility.

02

Monolithic: Inherent Cohesion

Native Composability: All components share the same state and security. This eliminates cross-layer trust assumptions and reduces integration risk for complex, interdependent AVS logic (e.g., a restaking middleware that needs deep chain access).

03

Modular: Specialized Performance

Best-in-Class Components: Decouple layers to optimize each. Use Celestia for high-throughput DA (<$0.001 per MB), EigenLayer for pooled security, and an Arbitrum Nitro rollup for high TPS execution. This achieves scale and cost-efficiency monolithic chains can't match.

04

Modular: Sovereign Flexibility

Future-Proof Stack: Swap out components without a hard fork. If a better execution environment (Fuel VM) or data availability layer (Avail) emerges, you can migrate incrementally. Critical for AVSs that must adapt to new cryptographic primitives or scaling solutions.

05

Monolithic: Constrained by Design

Bottlenecked by Base Layer: Your AVS's throughput, cost, and feature set are capped by the underlying chain's limits. An AVS on Ethereum L1 faces its ~15 TPS and high gas fees, limiting user scalability and economic viability for high-frequency applications.

06

Modular: Integration Complexity

Multi-Layer Security & Tooling: You must manage and audit the security of all bridge connections (e.g., to EigenLayer, Celestia). The tooling stack (Rollup-as-a-Service like Caldera, AltLayer) is newer, requiring more in-house expertise than deploying a simple smart contract.

HEAD-TO-HEAD COMPARISON

Monolithic vs. Modular Stack for AVS Deployment

Direct comparison of key metrics and features for building Actively Validated Services.

MetricMonolithic Blockchain (e.g., Ethereum L1)Modular Stack (e.g., Celestia + Rollup)

Data Availability Cost per MB

$1,200+

< $0.10

Sovereignty & Customizability

Time to Launch New Chain

N/A (Deploy as dApp)

< 1 week

Throughput (Theoretical Max TPS)

~100

10,000+

Shared Security Model

Primary Cost Driver

Execution & State Growth

Data Publishing

Key Dependency

Base Layer Consensus

DA Layer + Prover Network

pros-cons-a
PROS & CONS ANALYSIS

Monolithic Chain (e.g., Cosmos SDK) vs. Modular Stack for AVS Deployment

Key architectural trade-offs for deploying an Actively Validated Service (AVS).

01

Monolithic: Sovereign Execution & Consensus

Full-stack control: You own the entire tech stack (execution, consensus, data availability). This enables deep customizations like custom fee markets (e.g., Osmosis) and governance. This matters for protocols requiring unique VM environments or maximal sovereignty.

02

Monolithic: Native Interoperability

IBC-native architecture: Built for cross-chain communication via the Inter-Blockchain Communication protocol (IBC). This matters for AVSs that need to secure or interact with a portfolio of Cosmos app-chains (e.g., Neutron, Injective) without complex bridging.

03

Modular: Specialized Cost Efficiency

Optimal resource allocation: Leverage best-in-class layers (e.g., Ethereum for security via EigenLayer, Celestia for cheap DA). This reduces operational overhead and capital lock-up. This matters for cost-sensitive AVSs where minimizing stake requirements is critical.

04

Modular: Security & Ecosystem Access

Tap into established trust networks: Deploy on Ethereum L2s (Arbitrum, Optimism) or leverage EigenLayer's restaking pool. This provides immediate access to a $50B+ economic security pool and a massive developer ecosystem (Solidity, Foundry).

05

Monolithic: Development & Bootstrapping Overhead

High initial burden: You must bootstrap your own validator set, economic security, and liquidity. Tools like Ignite CLI help, but achieving meaningful decentralization and TVL is a multi-year effort (see early Cosmos chains).

06

Modular: Complexity & Integration Risk

Dependency management: Your AVS's liveness depends on multiple external systems (sequencer, DA layer, settlement). This introduces integration risk and potential for complex failure modes across loosely coupled components.

pros-cons-b
ARCHITECTURE COMPARISON

Monolithic vs. Modular Stack for AVS Deployment

Key strengths and trade-offs for deploying an Actively Validated Service (AVS) at a glance. Choose based on your team's resources, required sovereignty, and time-to-market constraints.

01

Monolithic: Integrated Simplicity

Single-Stack Deployment: Deploy your AVS directly on a battle-tested L1 like Ethereum, Solana, or Avalanche. This provides a unified security, consensus, and data availability layer.

Key Advantage: Faster initial launch with proven tooling (e.g., Ethereum's staking contracts, Solana's Sealevel runtime). This matters for teams prioritizing speed and reduced operational complexity over long-term flexibility.

02

Monolithic: Inherited Security

Leverage Base-Layer Security: Your AVS's economic security is backed by the full validator set and stake of the underlying chain (e.g., Ethereum's ~$110B+ stake).

Key Advantage: Strongest cryptoeconomic security from day one. This is critical for high-value, trust-minimized AVSs where the cost of a slash must be prohibitively high, such as cross-chain bridges or decentralized sequencers.

03

Modular: Sovereign & Specialized

Unbundled Stack: Deploy your AVS as a rollup using a dedicated execution layer (OP Stack, Arbitrum Orbit, Polygon CDK) with a custom data availability layer (Celestia, Avail, EigenDA) and shared security (EigenLayer).

Key Advantage: Maximum sovereignty and performance tuning. Choose optimal components (e.g., Celestia for high-throughput, low-cost DA at ~$0.0015 per MB). This matters for high-frequency trading AVSs or app-chains needing custom fee markets and governance.

04

Modular: Cost & Scalability Control

Decoupled Cost Structure: Separate execution, consensus, and data availability costs. Use EigenDA for cost-effective, Ethereum-aligned security or Celestia for ultra-low-cost blob storage.

Key Advantage: Predictable, scalable operating expenses. Bypass monolithic chain congestion fees. This is essential for high-volume, low-margin AVSs like decentralized orderbook matching or gaming sequencers where transaction cost is a primary constraint.

CHOOSE YOUR PRIORITY

Decision Framework: Which Architecture For Your Use Case?

Monolithic Stack for DeFi

Verdict: The established choice for maximal security and composability. Strengths:

  • Deep Liquidity & Composability: Direct access to Ethereum's $50B+ TVL and seamless interaction between protocols like Aave, Uniswap, and Compound.
  • Proven Security: Battle-tested smart contracts and the full security of the Ethereum base layer.
  • Developer Familiarity: Mature tooling (Hardhat, Foundry), established standards (ERC-20), and a vast talent pool. Trade-offs: You inherit Ethereum's gas fees and block space constraints, making micro-transactions and high-frequency trading economically unviable.

Modular Stack for DeFi

Verdict: The strategic choice for novel, high-performance, or niche financial products. Strengths:

  • Tailored Execution: Deploy a custom rollup (using OP Stack, Arbitrum Orbit, or Polygon CDK) with fee tokens, privacy features, or specialized VMs (EVM, SVM, Move).
  • Predictable, Low Cost: Sub-cent transaction fees enable new DeFi primitives like per-second rebasing or gasless social trading.
  • Sovereign Control: Independent upgrade paths and governance for your application-specific chain (e.g., dYdX Chain). Trade-offs: You must bootstrap liquidity and security, often relying on shared sequencers and Ethereum for data availability (via Celestia, EigenDA, or EIP-4844 blobs).
verdict
THE ANALYSIS

Final Verdict & Strategic Recommendation

Choosing between a monolithic chain and a modular stack is a foundational decision that dictates your AVS's technical and economic trajectory.

Monolithic Blockchains like Solana, Sui, and Aptos excel at delivering a vertically integrated, high-performance environment. This is because the execution, settlement, consensus, and data availability layers are tightly coupled, minimizing latency and cross-layer coordination overhead. For example, Solana's monolithic architecture enables a theoretical peak of 65,000 TPS with sub-second finality, providing a seamless developer experience akin to building on a single, powerful computer. This model is proven for applications demanding extreme throughput and low-latency user interactions.

Modular Stacks take a different approach by decoupling core functions across specialized layers like Celestia for data availability, EigenLayer for restaking security, and rollups like Arbitrum Orbit or OP Stack for execution. This results in a trade-off: you gain unparalleled flexibility and the ability to tailor each component (e.g., choosing a specific virtual machine or consensus mechanism) but introduce integration complexity and potential latency from inter-layer communication. The economic model also shifts from paying a single chain's fees to managing costs across multiple services.

The key trade-off is between integrated performance and sovereign flexibility. If your priority is maximizing throughput and minimizing latency for a user-facing dApp, a monolithic chain is the pragmatic choice. Its all-in-one design reduces operational overhead and is ideal for protocols like high-frequency DEXs or gaming applications. If you prioritize sovereignty, customizability, and long-term scalability, a modular stack is superior. This path is essential for AVSs that require a bespoke execution environment, want to leverage shared security from EigenLayer, or plan to implement novel cryptographic primitives not supported by monolithic L1s.

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