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1/11/2025

Monad Blockchain Overview

November 1, 2025

Monad Blockchain Overview

Monad is a next-generation Layer-1 blockchain designed to deliver extremely high transaction throughput while retaining full Ethereum compatibility. 

1. Introduction

The blockchain industry has spent years searching for networks that can handle real-world levels of activity without becoming slow or expensive. While many blockchains promise “scalability,” few deliver both high performance and compatibility with existing developer ecosystems.

Monad aims to bridge this gap. It is built as an Ethereum-compatible Layer-1 blockchain that dramatically increases execution speed through parallelization and optimized processing techniques. Unlike many new chains, Monad does not require developers to learn a new programming language or toolset – Ethereum smart contracts work natively.

2. Background: The Scalability Problem

Traditional blockchains process transactions one at a time. This guarantees security and consistency, but it creates bottlenecks:

  • Limited number of transactions per second

  • High fees during busy periods

  • Slow confirmation times

To address these challenges, different blockchains have tried alternative designs such as sharding, sidechains, or modular architectures. Monad instead focuses on making a single, unified chain extremely fast through better execution efficiency.

3. Monad’s Main Innovations

3.1 Parallel Execution

Most blockchains run transactions sequentially. Monad uses parallel execution, allowing many transactions to be processed simultaneously. This is similar to how modern computers run multiple applications at once instead of handling each task one by one.

3.2 Aggressive Optimizations

Monad introduces several technical improvements behind the scenes, including faster state access and optimized virtual machine execution. In simpler terms, the network is engineered to waste less time and compute power.

3.3 10,000 TPS Goal

Monad is designed for very high throughput, targeting around 10,000 transactions per second, far above what current Ethereum-layer networks achieve.

3.4 Full EVM Compatibility

A major advantage is that developers don’t need new tools or languages. Smart contracts written for Ethereum simply work on Monad, which lowers the barrier to adoption.

4. Why Monad Matters

4.1 A Better User Experience

Faster execution means:

  • Lower transaction fees

  • Quicker confirmation times

  • Higher reliability even during peak usage

This is essential for mainstream applications like gaming, payments, and decentralized finance (DeFi).

4.2 Easy Migration for Developers

Because Monad supports existing Ethereum tools, developers can bring their applications with minimal changes. This avoids the “empty ecosystem” problem many new chains face.

4.3 A New Competitive Layer-1 Model

If Monad’s performance goals are achieved, it introduces a new model: a single high-speed, high-efficiency chain rather than a fragmented multi-layer system.

5. Potential Use Cases

  • High-frequency trading platforms

  • Web3 games that require fast in-game transactions

  • Social networks where millions of small actions must be recorded

  • DeFi protocols that depend on low latency

These industries struggle on slower networks, and Monad’s architecture directly targets these pain points.

6. Economic and Ecosystem Considerations

Although Monad is still early in its development, several important economic factors have already emerged:

  • A growing ecosystem of developers preparing to build on launch

  • Interest from major venture capital firms

  • Potential for high-value applications that require consistent, high throughput

The project still needs to prove its long-term security and decentralization, but early indicators show strong market interest.

7. Challenges and Open Questions

Despite its potential, Monad faces several uncertainties:

  • Can such high performance be maintained under real, global usage?

  • How decentralized will the validator network be?

  • Will the ecosystem grow quickly enough to compete with established chains?

  • Can Monad maintain security while optimizing for speed?

These questions will determine whether Monad becomes a major player or just another experimental chain.

8. Conclusion

Monad presents a promising approach to blockchain scalability by pairing aggressive performance optimizations with full Ethereum compatibility. Its focus on parallel execution and throughput positions it as a potential leader among next-generation Layer-1 networks.

However, because the network is in early stages, real-world performance and adoption remain critical unknowns. If Monad succeeds, it may represent a new era of fast, user-friendly blockchain infrastructure capable of supporting mass-market applications.

This material is provided for information purposes only. Surto is not an advisor. Nothing in this material should be construed as investment, financial, tax, legal, accounting, regulatory or other advice.

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