Monad: A High-Performance EVM-Compatible Blockchain with Parallel Execution

Alright friends, today let’s talk about a new project that’s been getting a lot of attention in the blockchain world recently—it's called Monad. Don’t worry, I’ll explain everything in the simplest, most vivid way, just like telling a story, so everyone can understand. Remember, this is just an educational introduction, not investment advice!

What is Monad

Imagine the internet we use now is like a series of highways. Some highways (like Ethereum, which we’re familiar with) get super congested during rush hour, traffic slows down, and the tolls are really expensive. Monad, on the other hand, is like a “superhighway” in the blockchain world. Monad is a high-performance “Layer 1 blockchain.” You can think of a “Layer 1 blockchain” as the main road in the blockchain world, where all transactions and applications run directly on this chain. Monad’s goal is to solve the bottlenecks in speed and efficiency that current blockchains—especially Ethereum—face, and it’s very “friendly,” being compatible with existing Ethereum apps and tools. This means decentralized applications (dApps) already running on Ethereum can easily move to Monad’s “superhighway” and enjoy faster speeds and lower fees. Its core target users are those who need to process large volumes of transactions and have high demands for speed and cost, such as DeFi projects, games, or other high-frequency Web3 applications.

Project Vision and Value Proposition

Monad’s vision is simple: it hopes blockchain technology can truly go mainstream and be used by more people. Many blockchain projects today face the challenge that, while decentralization is great, speed is too slow and fees are too high—like an amazing amusement park, but with long lines and expensive tickets, so many people are put off. Monad wants to break this contradiction between “decentralization” and “scalability.” It aims to deliver ultra-high performance without sacrificing security or decentralization. Monad believes that only when blockchain can be as fast, smooth, and cheap as the internet apps we use every day, can it truly achieve mass adoption. Compared to similar projects, Monad’s huge advantage is its “full compatibility” with Ethereum. It’s like other new highways might require you to buy a new car to drive on them, but Monad’s highway lets you drive your existing Ethereum-compatible car (like using MetaMask wallet) right on, super convenient. This greatly lowers the barrier for developers to migrate and for users to adopt.

Technical Features

Monad is able to become a “superhighway” thanks to a lot of technical innovation, mainly these “black technologies”:* Ultra-high throughput and low latency: Monad aims to process 10,000 transactions per second (TPS), with sub-second finality. This is hundreds of times faster than Ethereum’s current ~15 TPS. Imagine Ethereum as a single-lane road, Monad as a hundred-lane highway, and the cars move even faster.* Parallel Execution: Most blockchains process transactions one by one, like waiting in line. Monad introduces “parallel execution,” like opening multiple lanes so many transactions can be processed simultaneously, greatly improving efficiency.* Deferred Execution: This technology allows the network to process the order of transactions before they’re finally confirmed, reducing the risk of network congestion and boosting efficiency.* MonadBFT Consensus Algorithm: The “consensus algorithm” is the rule by which all participants in the blockchain network reach agreement. Monad uses a custom Byzantine Fault Tolerant (BFT) consensus algorithm called MonadBFT, which is an optimized version of the HotStuff algorithm. This allows nodes in the network to communicate more smoothly and confirm blocks faster.* MonadDb: This is a database system designed specifically for Monad. It efficiently stores and manages blockchain state data, ensuring fast and reliable data even under high concurrency.* EVM Compatibility: As mentioned earlier, this is a core advantage of Monad. It’s fully compatible with Ethereum Virtual Machine (EVM) bytecode and Remote Procedure Call (RPC) APIs. This means Ethereum smart contracts and developer tools can be used directly on Monad, with no need to learn new programming languages or rewrite code.

Tokenomics

The native token of Monad is MON.* Token Symbol: MON* Issuing Chain: Monad blockchain* Total Supply: According to CoinGecko and CoinMarketCap, MON’s maximum supply is 100 billion tokens. However, some sources mention 10 billion or 100 billion native gas tokens. Here, we’ll use the commonly cited 100 billion from CoinGecko and CoinMarketCap as reference.* Token Utility: MON plays an important role in the Monad network, mainly used for: * Paying transaction fees: Just like gas fees on Ethereum, users need MON to pay for transactions or smart contract execution on Monad. * Staking: Holders can stake MON to help secure the network and potentially earn rewards. This helps decentralize and secure the network. * Governance: In the future, MON may also be used for community governance, giving token holders a say in the project’s direction.* Distribution and Unlocking: As of now, detailed plans for MON’s distribution and unlocking have not been fully disclosed. However, the team has hinted at an airdrop to reward early supporters and active participants.

Team, Governance, and Funding

Monad is backed by a team called Monad Labs.* Core Members: The team consists of experienced engineers and blockchain experts, many with deep backgrounds in high-frequency trading and distributed systems optimization. * Keone Hon: Co-founder and CEO. Previously a high-frequency trader at Jump Trading, and focused on blockchain research at Jump Crypto. * James Hunsaker: CTO, also worked at Jump Trading, and is a longtime collaborator with Keone Hon. * Eunice Giarta: Co-founder.* Team Features: Team members have decades of experience optimizing code for low latency and designing large-scale distributed systems. They apply best practices from computer science to blockchain networks, aiming to solve fundamental protocol issues.* Funding: Monad Labs has received significant funding. In February 2023, they raised $19 million in a seed round. Then in April 2024, they raised $225 million in a Series A led by Paradigm, reaching a $3 billion valuation. Total funding is between $225 million and $248 million. Other notable investors include Dragonfly Capital, Electric Capital, Greenoaks, and Coinbase Ventures.* Governance: As the project develops, Monad plans to implement decentralized governance, allowing MON holders to participate in platform decisions. The Monad Foundation has already been established to promote the growth and adoption of the Monad protocol and drive further decentralization.

Roadmap

Monad’s development roadmap clearly shows its phased goals from development to mainnet launch:* February 2022: Monad Labs founded.* February 2023: Seed round completed.* April 2024: Series A completed.* February 2025: Testnet launched. The testnet has processed over 2.44 billion transactions, demonstrating real-world performance.* Late 2025/Early 2026: Mainnet launch planned. The mainnet launch will mark Monad’s official entry into the blockchain ecosystem, supporting scalable decentralized app deployment.* 2025 and beyond: After mainnet launch, Monad will focus on ecosystem expansion, attracting more developers, and fostering diverse applications across various fields.

Common Risk Reminders

Any emerging blockchain project comes with risks, and Monad is no exception. As a friend, I must remind you of the following points:* Technical and Security Risks: Although Monad uses many innovative technologies, complex features like parallel execution may have unknown edge cases and potential vulnerabilities in large-scale operation. MonadDb, as a custom database, also needs time to prove its performance and stability under heavy use.* Economic Risks: Despite significant funding, the crypto market is highly volatile. MON’s price may be affected by market sentiment, macroeconomic factors, and project progress. Tokenomics details are not fully disclosed, and future token distribution and unlocking could impact the market.* Compliance and Operational Risks: Global crypto regulation is constantly evolving, and future policies may affect Monad’s operations and development. Over-reliance on venture capital could also lead to token concentration, raising centralization risks and affecting governance balance.* Competitive Risks: The blockchain space is fiercely competitive, with many other Layer 1 blockchains also working to solve scalability. Monad needs to keep innovating and attract developers and users to stand out.

Due Diligence Checklist

If you’re interested in Monad, you can look up more information yourself:* Official Website: Find Monad’s official website, which usually has the whitepaper, team info, and latest announcements.* Whitepaper: Read Monad’s whitepaper carefully to understand its technical details and vision.* Block Explorer: Follow Monad’s testnet block explorer to check on-chain activity and transaction data.* GitHub Activity: Check Monad Labs’ GitHub repositories to see development progress and activity.* Community Forums/Social Media: Follow Monad’s Twitter, Discord, Telegram, etc., to keep up with community discussions and the latest news.

Project Summary

In summary, Monad is an ambitious Layer 1 blockchain project aiming to solve scalability issues in current blockchains through innovative technologies like parallel execution and custom consensus algorithms, while maintaining full compatibility with Ethereum. It’s like building a “superhighway” for the blockchain world, hoping to make decentralized apps run faster, cheaper, and smoother. The team has a strong background and is backed by top investors, and the testnet has already shown impressive performance. However, as a new project not yet live on mainnet, it faces risks in technical maturity, market competition, and regulation. Remember, all the above information is for reference only and does not constitute investment advice. Always do your own thorough research (DYOR - Do Your Own Research) before making any investment decisions.