What Happened?
The highly anticipated rival to Solana, Monad, has announced the launch of its testnet this month. In addition to this, the project has secured billions of dollars in substantial investment, making it a new hotspot that demands quick analysis! A new era is about to begin!

Quickly Understanding Monad
To put it simply, Monad aims to achieve two main goals: First, to double the speed of the EVM parallel chain! Second, to secure a significant position on the L1 track with its superior performance!

What Problems Does Monad Solve?
High-Performance and Low-Cost Blockchain Execution: Monad is dedicated to increasing transaction throughput and reducing costs through parallel transaction execution and optimized storage backends, aiming to process tens of thousands or even hundreds of thousands of transactions per second (TPS).

Enhanced Blockchain Scalability: By optimizing consensus algorithms and execution mechanisms, Monad can significantly increase throughput while maintaining decentralization.

Improved Decentralized Finance (DeFi) User Experience: The project aims to reduce user losses on DeFi platforms, such as slippage and liquidation penalties, by optimizing transaction costs and execution efficiency, thereby enhancing the user experience of DeFi applications.

EVM Compatibility: Monad is fully compatible with the existing Ethereum Virtual Machine (EVM).

What Is Monad's Parallel EVM?
Imagine you have been given the task of washing four pieces of clothing. The requirements are: washing, drying, folding, and storing. Each piece of clothing represents one cycle. In the traditional Ethereum EVM mechanism, each operation (corresponding to each transaction) must be executed in sequence. Only after one cycle is completed can the next one begin. Therefore, four sets of clothes would need to go through four steps sequentially, totaling 16 steps. (See the figure below)

However, under the "Parallel EVM" mechanism, each independent cycle can be executed simultaneously. So, while one piece of clothing moves to the next step, the next piece can immediately enter the previous operation, reducing the total number of steps to just 7, more than doubling the efficiency.

Technological Innovations of Monad
Monad is a high-performance Layer 1 blockchain with several notable technological features that give it significant advantages in the application and scalability of blockchain technology.

• Parallel Execution and Optimization: Refer to the introduction above (What Is Monad's Parallel EVM?).

• High-Performance Consensus Mechanism (MonadBFT): Monad employs a BFT consensus mechanism based on HotStuff—MonadBFT. Unlike traditional PoW (Proof of Work) or PoS (Proof of Stake) mechanisms, MonadBFT significantly enhances performance through an efficient consensus process.

• Low Hardware Requirements: Monad's design allows it to run on consumer-grade hardware, lowering the barrier for node participation.

• Custom Database (MonadDB): To optimize blockchain performance, Monad uses a custom storage system—MonadDB. Traditional blockchain storage relies on RAM, whereas MonadDB stores most data on SSDs, greatly reducing RAM demand and enhancing storage and data access efficiency through an optimized Merkle Patricia Trie (hash tree) data structure.

Why Crowned as the King of EVM So Early?

• Breakthrough Performance: Monad's performance can reach over 1,000 times that of Ethereum, capable of supporting more complex application types for broader adoption. Monad stands out with its astonishing speed of 10,000 transactions per second (TPS). Imagine transferring funds in a DeFi protocol, buying and selling NFTs, or making international transfers—all in the blink of an eye.

• Decentralized Node Participation: Low hardware requirements greatly enhance its decentralized nature, allowing more participants to join the network, which is crucial for the development of the decentralized finance ecosystem.

• EVM Compatibility: Monad is fully compatible with the Ethereum Virtual Machine (EVM), enabling developers to easily migrate existing Ethereum smart contracts and decentralized applications (DApps) to the Monad platform.

• Reduced Transaction Costs: Monad's technological innovations reduce redundant overhead in transaction execution and optimize the storage system to provide lower transaction fees, making it very friendly for large-scale DApp applications (such as DeFi, NFTs, etc.).

Investment Lineup
Monad's investment lineup is primarily represented by: Paradigm*, Coinbase Ventures, Wintermute, Electric Capital, Castle Island Ventures, eGirl Capital, Amber Group, Archetype, Bankless Ventures, CMS Holdings, CoinFund, Galaxy Digital, HTX Ventures, etc. The total financing amounts to billions of dollars, with the current valuation nearing $3 billion!

Project Development Analysis
With its outstanding performance, efficient compatibility with existing Ethereum applications, and consistent commitment to security, Monad demonstrates strong potential to become a leader in the blockchain infrastructure field. Faster transaction speeds, lower costs, and a vibrant developer community position Monad to usher in a new era of blockchain technology.

While Monad's potential is already evident, it is important to note that it is still under continuous development. The project's planning and the team's focus are highly convincing. As the platform gradually improves and the community continues to grow, it is certain that Monad will be an undeniable force in the blockchain field, with potentially far-reaching impacts on the future blockchain ecosystem.