What is Monad?

Monad is a Layer 1 network built by Monad Lab that's currently in its testnet phase with a mainnet launch on the way.

The upcoming network is widely anticipated because of its design that lets it process as many as 10,000 transactions per second. This is made possible through its four key optimizations: MonadBFT, asynchronous execution, parallel execution and MonadDb. 

Monad is also compatible with the Ethereum Virtual Machine (EVM), a decentralized computing environment that executes smart contracts built on the Ethereum blockchain. This allows developers to more easily port over Ethereum applications to the Monad network. 

How does Monad work?

Monad touts itself as 1,000 times faster than Ethereum, with gas fees below $0.01 and low hardware requirements. Along with its 10,000 TPS throughput, Monad achieves one-second block times and single-slot finality. Put another way, Monad can process and confirm a new set of transactions once every second, and it immediately finalizes a block added to its blockchain to improve confirmation times. 

Parallel and asynchronous execution

Monad achieves its high performance benchmarks through parallel execution and asynchronous execution. The former allows multiple transactions to be processed simultaneously, while the latter separates the consensus and execution phases for greater efficiency.

In most blockchains, transactions are processed sequentially so that each transaction is handled one at a time. This can bottleneck how many transactions the network handles. Monad's parallel execution and asynchronous execution reduce latency and increase the network's overall transaction capacity.

These two key traits are based on what's supporting Monad — its consensus mechanism. 

Monad's consensus mechanism

At the core of Monad is MonadBFT. It is a Byzantine Fault Tolerant protocol based on the HotStuff framework. MonadBFT facilitates the network's one-second finality by reducing the number of communication phases required between validators, thus streamlining the process of agreeing on the next block. 

Additionally, MonadBFT integrates deferred execution to separate the consensus and execution phases. Validators first agree on the transaction order (consensus) before executing them. This approach optimizes resource usage and allows for parallel execution of transactions.

Monad still uses a proof-of-stake consensus mechanism to guard against Sybil attacks. Proof of stake selects validators based on the amount of cryptocurrency they stake to establish decentralization, while MonadBFT deploys the Byzantine Fault Tolerant approach to enable the one-second single-slot finality. 

MonadDb

Monad also contains MonadDb, a distributed database that undergirds its Ethereum compatibility. MonadDb deploys a distributed architecture to spread large amounts of data across multiple nodes, ensuring data remains accessible in the event of node failures or network partitions.

Monad’s ecosystem and use cases

Notable protocols in Monad's ecosystem include:

• aPriori: aPriori is a project that initially focused on developing a maximal extractable value (MEV) solution for the EVM blockchains. However, it later shifted its sights to the Monad ecosystem.
• Kintsu: A liquid staking protocol, in which users can stake their tokens while maintaining liquidity. 
• Kuru: An onchain order book exchange built on Monad. 

Monad is one of a small sector of blockchains to offer scalability without rollups, Layer 2 scaling solutions that process transactions off-chain and batch them to the Layer 1. It has gained popularity alongside Solana, Sui, Aptos, and Sei.

"What's particularly interesting about Monad is that it draws significant inspiration from Aptos and Sui in designing its parallelized execution environment, while still maintaining compatibility with EVM," Manifold Ventures General Partner Aric Chang told The Block.

More developers might opt to build projects previously only seen on Solana such as high-fidelity DeFi and decentralized physical infrastructure networks (DePINs) due to its high throughput and EVM compatibility, Pantera Capital General Partner Lauren Stephanian added.

Who makes up the team behind Monad? 

The team behind Monad consists of Keone Hon, James Hunsaker and Eunice Giarta. They are the core founding team behind Monad Labs, a blockchain development company that is the principal builder behind the Monad blockchain. 

Hon and Hunsaker previously worked for Jump Trading, where they built low-latency, high-frequency trading systems. Eunice Giarta serves as Monad Labs' chief operating officer.

Hon and Hunsaker had raised $19 million in funding in February 2023, followed by $225 million led by Paradigm more than a year later.

Beyond Monad Labs, the Monad Foundation acts as an independent organization that promotes and develops the Monad blockchain. Its primary focus is to support the Monad blockchain's progress toward its mainnet launch (Monad rolled out its public testnet in mid-February of 2025.)

In addition, the Foundation encourages community-led improvement proposals, provides developer documentation and engages in ecosystem development for the Monad protocol.