Discover the Top 5 Best Modular Blockchain Projects of 2025

The best modular blockchains are Arbitrum, Manta Network, Celestia, Optimism, and Berachain. The best modular blockchain projects are designed to separate core blockchain functions like execution, consensus, and data availability. This design helps improve speed, reduce costs, and increase flexibility for developers and users.

To choose the best modular blockchain, you have to consider factors such as project team, use cases, scalability, community engagement, interoperability, and tokenomics.

This guide will review the 5 best modular blockchains and explain the evolution of blockchain from monolithic to modular. We will also discuss the benefits of modular blockchains today and why they matter for the future.

1. Arbitrum

Arbitrum is a Layer 2 scaling solution for Ethereum that employs optimistic rollups to enhance the number of transactions per second and lower costs. It settles transactions off-chain and then publishes the results to the Ethereum mainnet, thus providing scalability but still preserving security. It separates all the major functionalities, such as execution, consensus, and data availability, to increase efficiency, and that’s what modular blockchains do.

Arbitrum also has its own virtual machine, which is called the Arbitrum Virtual Machine (AVM), and it is compatible with the Ethereum Virtual Machine (EVM) as well, to enable developers to deploy existing Ethereum smart contracts with little modification on Arbitrum. The network utilizes a multi-round proof-of-fraud system, so that a malicious transaction can easily be challenged by the validators. If the malicious transaction is successfully challenged, it will be rejected, and network integrity will be maintained.

Arbitrum’s design enables it to process as many as 40,000 transactions per second, more than twice the capability of Ethereum. Its high rate and lower fees make it a desirable platform on which to deploy decentralized applications (dApps). Also, Arbitrum’s Stylus upgrade increases flexibility with support for coding your smart contracts mainly in Rust and C++ in addition to Solidity.

Key Features of Arbitrum

• Optimistic Rollups: You can easily process transactions off-chain, which, of course, reduces costs while relying on Ethereum for security.
• Stylus Upgrade: It supports writing smart contracts in Rust, C++, along with Solidity for some extra flexibility.
• EVM Compatibility: You can deploy Ethereum dApps with minimal changes to ensure seamless integration.
• High Throughput: Arbitrum is quite fast compared to Ethereum, as it achieves up to 40,000 TPS, ideal for scalable applications.
• Decentralized Governance: You can also participate in the Arbitrum DAO to shape the network’s future. All you need to do is stake some ARB tokens.

Pros of Arbitrum

• Processes up to 40,000 transactions per second
• It has significantly lower transaction fees than Ethereum
• Supports existing Ethereum smart contracts
• Highly secure modular blockchain with a fraud-proof system
• It is developer-friendly as only minimal changes are required to deploy dApps

Cons of Arbitrum

• Withdrawal delays with a seven-day challenge period are quite frustrating
• It has limited interoperability and faces issues in connecting with other L2s

2. Manta Network

Manta Network is a zero-knowledge (ZK) applications-focused modular blockchain ecosystem. Manta Pacific and Manta Atlantic are the two major components of it.

Manta Pacific is a Layer 2 (L2) solution on Ethereum, designed to be optimized for EVM-native ZK applications. It mainly depends on the use of Celestia for data availability and will eventually move to a zkEVM on top of Celestia via the Polygon Chain Development Kit (CDK). This setup is best for offering scalability and affordable transactions for ZK applications, generally built on Solidity. Manta Atlantic is a Layer 1 (L1) blockchain on the Polkadot network, and it is mainly aimed at programmable identities and credentials via zkSoulbound Tokens (zkSBTs). It provides a secure place for applications with a need for high privacy and compliance.

Manta Network was established in 2020, and today, it provides support for more than 200 decentralized applications (dApps). And, with the addition of Celestia’s modular data availability and Universal Circuits, you have the ability to develop ZK-enabled applications with little modification to the code. This makes it best for DeFi, gaming, and identity verification.

Key Features of Manta Network

• Modular Architecture: You can scale applications efficiently using Celestia for data availability and zkEVM for execution.
• Zero-Knowledge Proofs: Manta Network ensures private transactions and identity verification with ZK technology.
• Low Gas Fees: You will benefit from up to 90% reduced transaction costs compared to other traditional Layer 2 solutions.
• Universal Circuits: It will provide you with a ZK library and enable developers to integrate ZK-enabled contracts into existing Solidity smart contracts.
• Interoperability: You can easily transfer your digital assets between Manta Pacific and Manta Atlantic via cross-chain bridges.

Pros of Manta Network

• Highly scalable with low-cost transactions for efficient dApp deployment
• Strong privacy features using zero-knowledge proofs for secure interactions
• Flexible modular design supports seamless upgrades and maintenance
• An interoperable ecosystem for developers.
• Developer-friendly tools simplify ZK application development

Cons of Manta Network

• A dual-chain setup may be somewhat challenging for new developers
• Transition to full zkEVM is still in progress

3. Celestia

Celestia is another best modular blockchain that separates consensus and data availability from execution. This helps developers to create customizable blockchains without having to handle the underlying infrastructure.

A major innovation in Celestia is Data Availability Sampling (DAS). DAS generally helps light nodes to check the existence of large blockchain data sets without the need to download the entire set of data. This minimizes the hardware requirements and the costs of transactions.

Also, the modular mechanism allows you to deliver sovereign rollups or application-specific chains that scale without compromising security or decentralization. DAS mainly forms the foundation of this architectural structure used by Celestia, wherein it allows light nodes to verify huge blocks by sampling small data sets and thereby achieving scalability with growing block sizes.

You can easily deploy a blockchain as straightforwardly as a smart contract by using the high-throughput data availability of Celestia. Also, rollups, such as the one created with Ethereum or the Cosmos SDK, will be supported by the network, and it will utilize proof-of-stake consensus through CometBFT.

Key Features of Celestia

• Data Availability Sampling (DAS): You can easily verify large blocks with minimal data, and hence boost scalability.
• Modular Architecture: Celestia separates consensus and data availability from execution to offer flexibility.
• Sovereign Rollups: You can deploy your own customizable blockchains with full control over rules.
• Proof-of-Stake Consensus: Celestia uses CometBFT for secure and decentralized transaction ordering
• Namespaced Merkle Trees (NMTs): You can easily access specific data efficiently, enhancing security.

Pros of Celestia

• Enables scalable and efficient decentralized applications
• Reduces hardware requirements for network participation
• Simplifies the deployment of customized blockchains
• Enhances cross-chain communication and interoperability
• It will provide uniform security across all deployed chains

Cons of Celestia

• Relatively new technology with a somewhat evolving ecosystem
• It depends on external rollups for execution functionality

4. Optimism

Optimism is another modular Layer 2 blockchain designed to scale Ethereum. It utilizes optimistic rollups to execute transactions off-chain and publishes the data to Ethereum to be verified. This reduces gas costs and speeds up transactions without compromising the security of Ethereum. Because it is a modular blockchain, execution and consensus in Optimism are separated. Execution mainly takes place on Optimism, and the final results are then passed to Ethereum. 

Optimism perfectly complements the Ethereum Virtual Machine (EVM). This equips you with the ability to deploy the existing Ethereum smart contracts on Optimism without much or many modifications. The network generally relies on the use of Geth, which is Ethereum’s software client, to provide compatibility and simplicity.

The Bedrock upgrade speeds up the performance of Optimism. Transaction costs decreased by as much as 47%, and deposits took only 3 minutes compared to the previous 10 minutes. Bedrock also improved compatibility with Ethereum through support for features such as EIP-1559 and chain reorganizations. Its government is run by the Optimism Collective, and the OP token serves as the medium of governance decisions, including protocol upgrades and the funding of public goods.

Key Features of Optimism

• Optimistic Rollups: Processes transactions off-chain and then posts data to Ethereum for validation. Hence, this is best for reducing costs and increasing speed.
• EVM Compatibility: Fully supports Ethereum smart contracts and allows easy deployment without modifications.
• Bedrock Upgrade: Enhances performance by lowering fees, reducing deposit times, and improving Ethereum compatibility.
• Superchain Vision: Aims to create an interoperable network of blockchains for seamless cross-chain interactions.
• Public Goods Funding: It supports projects that benefit the Ethereum ecosystem through the use of retroactive funding.

Pros of Optimism

• Reduces Ethereum gas fees significantly
• Maintains Ethereum’s security while increasing scalability
• Fully compatible with existing Ethereum tools and contracts
• Decentralized governance promotes community involvement
• Supports funding for public goods and ecosystem growth

Cons of Optimism

• Have a 7-day withdrawal time for transactions moving from OP Mainnet to the Ethereum
• Superchain vision is still under development and unproven

5. Berachain

Berachain is a Layer 1 modular and high-performance blockchain with native support for the Ethereum Virtual Machine (EVM). You’re able to deploy Ethereum applications natively and seamlessly due to its identical execution layer. It’s developed on top of the Cosmos SDK, and the modular structure of Berachain separates execution, settlement, consensus, and data availability.

What distinguishes Berachain from the traditional Proof-of-Stake is the Proof-of-Liquidity (PoL) mechanism. With the Proof-of-Stake, while your tokens get locked, they don’t reward you for being a liquidity provider. With the Proof-of-Liquidity mechanism, though, you will be rewarded.

It operates on a system named BeaconKit. This simplifies the process of developing applications and also accommodates Ethereum-based applications. You don’t need to modify the code to deploy your Ethereum applications to Berachain. This reduces the time and effort.

Berachain’s triple-token economy of BERA (gas), BGT (governance), and HONEY (stablecoin) creates a relatively balanced economy. You have the option to use HONEY for stable transactions, use BERA as fee currency, and the BGT for voting on network proposals. Launched in 2025, the DeFi, NFT, and Layer 2 solutions supported by Berachain make it a developer-friendly option.

Key Features of Berachain

• EVM Compatibility: It supports seamless deployment of Ethereum-based applications without code modifications.
• Multi-Token System: Berachain utilizes $BERA for transactions and $BGT for governance to separate utility and decision-making functions.
• Modular Blockchain Architecture: Built on BeaconKit, allowing for customizable and scalable blockchain development.
• Native DeFi Applications: Hosts dApps like BEX and Honey Swap, demonstrating the practical use of its consensus model.
• Cross-Chain Interoperability: You can easily transfer assets across blockchains using the native bridge.

Pros of Berachain

• Enhances liquidity with PoL and reduces DeFi fragmentation
• Offers full EVM compatibility for easy development
• It ensures fast transactions with single-slot finality
• Supports cross-chain transfers for broader connectivity
• It provides a modular design for tailored blockchain solutions

Cons of Berachain

• It’s a new blockchain with untested long-term stability
• Limited adoption compared to other best modular blockchains

What Is the Evolution of Blockchain from Monolithic to Modular?

Blockchain has transitioned from monolithic to modular design. This transition has enabled blockchains to be more efficient, flexible, and scalable without sacrificing security.

In the beginning, blockchains such as Bitcoin and Ethereum were monolithic. A monolithic blockchain consists of one single system in which all key functionalities, such as consensus (transaction validation), execution (transaction processing), and data storage, are controlled via a single layer.

For instance, the Bitcoin blockchain deals in secure peer-to-peer transactions, and all the nodes undertake all activities, from validation of transactions to storage of the entire ledger. Also, Ethereum, started in 2015, brought in smart contracts but continued to use the monolithic approach, with all the nodes doing all the calculations. Although the design provides security and decentralized control, it lacks scalability. With growth in the number of transactions, monolithic blockchains experienced slower transaction execution and higher fees.

To counter these issues, modular blockchains were created. With a modular stack, each layer performs different work. This structure partitions the primary tasks:

• The execution layer executes smart contracts and processes transactions.
• The consensus layer provides agreement between all the nodes about the correct data.
• The data availability layer networks hold and distribute transaction data.
• The settlement layer completes and settles transactions.

Ethereum’s roadmap subsequently tracks this transition. Following its 2022 Merge, Ethereum embraced a modular design with rollups, like layer 2 solutions such as Optimism and Arbitrum, that execute transactions off-chain but use Ethereum’s main chain to achieve consensus and store data.

Why Is Blockchain Moving from Monolithic to Modular?

Blockchain is moving from monolithic to modular design to improve scalability, flexibility, and efficiency. All the tasks, such as execution, consensus, and data availability in a monolithic blockchain, take place in a single layer. Each node performs all the work.

This configuration caps the speed and increases the expense as more users come in. Modular blockchains mitigate the issue by separating these tasks. Various layers or systems undertake different work as discussed above.

Ethereum is now adopting this modular design through rollups and sharding, and there are other blockchains like Celestia, that are built fully modular from the start. For more info, you can also check out our in-depth guide on what modular blockchain is.

How to Choose the Best Modular Blockchain Projects?

To choose the best modular blockchain projects, you need to consider factors such as project team, use cases, scalability, community engagement, interoperability, and tokenomics.

• Team Experience and Track Record: A team working on a modular blockchain project matters most to its success. Review their previous work or contribution on GitHub or LinkedIn to verify their credibility. If the team has a good history of scaling solutions, such as the team behind Arbitrum or Celestia, they inspire confidence.
• Use Case and Problem-Solving Potential: A good modular blockchain project should tackle a real-world issue or expand current blockchain capabilities. 
• Technical Robustness and Scalability: The technical design of the project should be robust and able to support high volumes of transactions. You can also try to review the codebase for security audits, modular design clarity, and compatibility with existing ecosystems like Ethereum. Unaudited or weak codebases enhance the possibility of vulnerabilities or a lack of performance.
• Community Engagement and Support: An active and vibrant community suggests a project’s adoption and longevity possibility. See if there’s active discussion, developer engagement, and user feedback on platforms such as Discord, Reddit, or X. Projects such as Arbitrum become successful based on active community-driven development and DeFi applications.
• Interoperability and Ecosystem Integration: They should also integrate easily into any number of networks to achieve maximum utility. Review if the project enables cross-chain interaction or interoperates with dominant networks such as Ethereum or the Cosmos. 
• Tokenomics and Economic Model: Analyze the token’s purpose, distribution, and whether it serves the objectives of the project, i.e., staking for consensus or paying for transactions.

Why You Shouldn’t Overlook the Rise of Modular Blockchain Projects?

You should not overlook the rise of modular blockchain projects because they solve key problems found in older blockchains. The benefits of modular blockchains are better scalability, lower costs, more flexibility, easier upgrades, stronger security, and higher decentralization.

• Improved blockchain scalability: Modular blockchains generally process more transactions by splitting work between layers, and this would speed up the network and decrease congestion.
• Lower costs: Since work is divided between layers, every layer can work more efficiently, resulting in lower costs for transactions.
• More flexibility: You can easily create dedicated layers for your particular applications, and you can even select the most suitable tools for execution, data placement, and settlement.
• Easier upgrades: You can update each layer separately, and this makes the system easier to maintain and update without major changes.
• Improved security: Modular systems frequently employ tried-and-tested blockchains such as Ethereum for agreement or settlement, and hence, this lends a robust security layer to new projects.
• Decentralization: As discussed above, multiple networks or layers handle the work in modular blockchain systems. This is important for decentralization as it avoids the control of one group and allows open participation.

Is Solana Monolithic or Modular?

Solana is a monolithic blockchain. Solana handles all its core functions like execution, consensus, and data availability on a single layer only. Hence, every validator node in Solana runs all parts of the network. This results in all the nodes processing the transactions, achieving consensus, and retaining data simultaneously. Solana doesn’t layer these tasks as modular blockchain networks do.

However, since all functions on Solana are handled by the same network, it requires some very powerful hardware. In the past, we have seen that it also faces issues like network outages and centralization concerns due to its high system demands.