Ladder Finance Academy : Why did ladder finance choose the “ modular layer ”

Why did Ladder Finance Choose the “Modular Layer”

We’ve talked before about why we’re using the Privacy Network feature of the zkSync Era chain. Due to different countries and regulations, the Privacy Network feature is only one option, but Ladder Finance wanted to launch on top of the zkSync Era Network to cover a lot of bases.

Today, we’d like to talk about why we’re using the modular approach of L2, rather than the monolithic approach of L1.In fact, just by looking at the layers on top of the Ethereum network, it’s already proven to be widely scalable.

The reason the Ethereum network is so vastly scalable is because they use a modular network. Typically, a modular network is divided into the execution layer, settlement layer, consensus layer, and data availability layer, all of which are decentralized. This means that, like blocks in ‘Lego’ if one fails, it only affects one node.

Most nodes have sub-nodes, so if a node fails, the creation and validation of blocks may be temporarily halted, but the sub-nodes are up and running, allowing the network to function with only a brief hiccup.

The biggest advantage of the modular layer is that each validator is sufficiently complementary to the validation of the network without having to run a “full node.” This greatly increases the uptime before the scalability of the network.

These advantages make modular networks easy to upgrade to other derived layers or the network itself. In this way, many Layer 2 chains can be powered by an Ethereum network with a modular network, and we have the strength of the zkSync Era network with zk-Rollup.