On April 30, 2022, Ethereum gas fees went through the roof during Yuga Labs’ sale of Otherside land. Due to clogged networks and insufficient fee payments, purchases failed with more than $100 million in fees burned.
The wreck pushed game marketplaces to adopt modular rollups and gas-sponsoring designs, plus refunds. It also showed the downside of Ethereum's monolithic stack, where execution, consensus, and data availability all compete for the same space on the blockchain.
Fast forward three years, major game studios minting through gas-sponsored rollups and submitting those transactions to Celestia, and the once-anxious freeze-ups are memories. The same pattern is powering fintech-ledger clearing millions of micro-payments per hour, and enabling hospital networks that service GDPR-safe scans with a push of a button.
This article is a roadmap of the journey, explains what a modular blockchain is, and reviews modular blockchain projects that are generating real adoption in gaming, finance, and health.
What is a Modular Blockchain?
What is Modular Blockchain?
A modular blockchain splits the four core duties of a ledger: execution layer, settlement layer, consensus layer, and data availability layer, into independent but interoperable modules.
Think this from LEGO® bricks POV.
You can attach an execution ‘brick’ for the game logic directly to a data availability ‘brick’ with high throughput capability, without completely re-designing the entire chain.
On the other hand, the monolithic chain designs try to conduct every function on one foundation, much like having a single block of concrete to create the roof, walls, and plumbing!
The benefit with the former is that it expands the options for builders to select the optimal tool fit to purpose, to scale throughput when the user stories explode, and to substitute parts of their stack without hard-fork drama!
Comparing Monoliths vs Modules
The functions differ specifically in four critical facets
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Separating these duties slashes bottlenecks, cuts validator hardware costs, and lets devs launch sovereign rollups in hours, not quarters.
Why Modularity Is the New Standard for Web3
Source: X
Scalability constraints, such as excessive time for confirmations (20 seconds) and high gas fees (triple digits), won't work in high-led apps like mass-market games, real-time fintech dashboards, and digital health data exchanges.
Blockchain modular architecture tackles that by:
Ad-Hoc Scalability: Rollups maintain shared security, yet allow the posting of only transaction data to light DA layers to provision layer 2 blockchain scalability with some finality.
Reduced operating costs: Only pay for the module you utilise, and heavy execution bursts don't require full-node data storage upgrades.
Simplified compliance: Plug a privacy-preserving ZK identity module into an existing settlement layer to meet GDPR or HIPAA compliance.
Reduce product cycle time: Front-end teams can provision testnets using Optimism's Bedrock or Arbitrum Orbit overnight, and when there is measurable user value, migrate to L1.
Result: Collaborating with platform workstreams from EigenCloud — studio branding teams, neobanks, and hospital IT workstreams do not have to worry about the protocol experience anymore; they must just build for their users
Gaming Projects: Web3 Performance Without Lag
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The latency problem
In a monolithic ecosystem, a sword swing, loot drop, or NFT mint all wait behind every other contract. Peak time congestion kills web3 gaming performance, and gas fees go higher than a Legendary skin.
Modular solution
Custom execution rollups: Using Dymension RollApps studios, can deploy game-specific chains tuned for 100 ms block times and outsource data availability to Celestia.
Asset security: NFTs remain on a proven settlement layer, and players retain custody regardless of whether the game chain goes to sleep.
Interoperability perks: RollApps speaks IBC, so items can be transferred between games or marketplaces without bridging risks.
Case study: Immutable X Gaming
Using a modular architecture, the zkEVM gaming platform processes millions of NFT trades per day, achieves sub-second confirmation, and incurs almost zero gas fees. Side-quests still reference Ethereum for asset security, but trades now settle instantly without congestion.
Micro-lending dApps and high-frequency trading bots can process thousands of transactions each block. On monolithic chains, each swap is in the same mempool, causing slippage to increase and user acquisition to stall.
Modular benefits for finance
Lower fees: Execution rollups batch swaps, only posting calldata to data availability layers, dipping gas by an estimated 90%.
Reg-tech plugins: zk-rollups KYC plugin validates identity without leaking PII.
Reg-tech add-ons: Plug-in KYC zk-rollups verify identity without leaking PII.
Example: Manta Network + Celestia
Manta Pacific became the first EVM layer 2 that stores its zk-proof blobs on Celestia. The combo enables privacy-preserving DeFi where shielded trades settle cheaply yet remain auditable for regulators.
Execution: Manta's ZK circuits process swaps off-chain.
Celestia's DAS ensures proofs are published and retrievable.
Medical Data Markets: Privacy First, Compliance Built-In
Hospitals wrestle with secure patient data sharing and multi-jurisdictional privacy rules. A monolithic public chain can't selectively hide records while proving authenticity.
How modularity helps
ZK sovereign rollups allow for blockchain applications that are naturally private, giving clinicians access to only decrypt the pieces they have permission to.
Restricted imaging data can have a dedicated DA module, while hashes only make it to the public settlement network, allowing the pixel raw data to remain off-chain but get verified for the right party to access.
Doctors in Berlin and Delhi have the ability to retrieve the same record in a way that resembles IBC messaging, in full compliance with GDPR.
Healthcare entities (think Pfizer and Mayo Clinic) are trying for-profit modular blockchain implementations that are privacy-preserving, proof-enabled. Such could allow researchers access to anonymized medical datasets, in a wikifiable ecosystem, to ship and share secure value-added access.
Whenever implemented, those system types could clear a lot of the permissioning data-sharing channels that can take weeks to months, while retaining the privacy of patients.
Top Modular Blockchain Projects of 2025
As for modular blockchain examples, studios can mix-n-match. Imagine paired Dymension execution chains with Celestia data and an Optimistic settlement bridge. Just think about the potential of such stacks…their ability to achieve web-scale throughputs.
THRILLING!! Isn’t it?
A Few Things to Keep in Mind Though
Modular stack swarm is naturally attractive for developers, although they do face a couple of practical nuisances:
Shared security is not automatic. A sovereign roll-up that diverges too far from its settlement layer is responsible for its own validator set or restaking module. This creates a governance and cost overhead.
Sequencer risk is real. Almost all roll-ups are using a single, permissioned sequencer today. If they freeze, or censor, a game or payment rail will also freeze.
Bridges are bridges. Moving assets from their execution layer generates the same smart-contract and liquidity-fragmentation concerns that wreak havoc with cross-chain swaps.
Data availability is not free. Celestia and other DA layers will charge you per byte; a hot NFT drop or high-resolution medical image may make your livelihood more expensive than expected.
Regulation still bites. If a privacy-preserving module helps with GDPR, but the final accountability for lawful processing remains with the data controller, and not the chain.
Tooling is still nascent. Indexers, block explorers and wallet SDKs are still maturing; early tenders should budget time for developing custom integrations.
Upgrades require choreography. It’s easy to imagine that swapping a settlement layer, or adding a zk-proof circuit to an existing roll-up, will preserve backwards compatibility, but this is not usually true unless contracts are written with upgradability at the forefront.
Think of these points more as design constraints, rather than deal-breakers. They are also good reminders for teams to thoughtfully plan for governance, audit bridges, prepare for DA costs, and modularize upgrade paths, just as they are recommending for the architecture of the system.
What Comes Next for Modular Web3
By 2028, vast high-load blockchain services (think AAA shooters, or cross-border payroll applications) will launch modular first.
Shared DA layers will behave like cloud CDNs, the sovereign rollups will function as SaaS instances for prosumers, which can plug in the module we believe is going to be the key for compliance, as payment gateways unlock their own overall growth. Startups will get back their speed, enterprises will get cost models they can depend on, and users will get an experience that finally feels like it has broken through the limit instantly.
Builders, Learn to Compose rather than Reinvent.
Prototype on a test RollApp, plug in Celestia at the DA layer, and take fault proofs from Optimism to focus on the game, loan interface, or medical dashboard functioning for the delight of your end-users.
Still, the telltale is to always have the basics cleared. Explore our primer on consensus mechanisms in blockchain, or test a Celestia light-node with our step-by-step guide.
The modular future is already here, waiting for you to implement your next disruptive idea.