The Rise of Parallel EVMs

There's no slowing down innovation in the blockchain industry. Keeping track of advancements across different verticals like DeFi, RWAs, Gaming, Bitcoin Ordinals, NFTs, DePIN, social media, is a herculean task.

One of the hottest narratives of this cycle is the emergence of parallelized EVM blockchains. This trend reflects the recently amplified focus on optimizing blockchain networks for scalability and performance, a necessary evolution for widespread adoption.

The Parallel EVM narrative is getting a lot of traction at the moment, some even speculate it's the next big trend for 2024. But before we jump on the hype train, let's take a step back and ask: what exactly is a parallelized EVM, and does it make blockchains more scalable?

Source: @gakonst

The EVM

At its core, the EVM (Ethereum Virtual Machine) is the engine that powers smart contracts on the Ethereum blockchain. Essentially, it is a shared computing engine.

The EVM processes smart contract code and executes transactions on the network. The EVM utilizes sequential transaction ordering, as its execution method. Sequential execution is the simplest implementation. However, the caveat of this execution method is that transactions are processed one after the other, which inherently limits the network's ability to scale.

Understanding Parallel Execution

Parallel Execution is a novel solution introduced to enable concurrent execution of transactions. In essence, it enables the simultaneous processing of multiple transactions, unlike conventional sequential execution, where transactions are processed one at a time.

To give a more nuanced approach to this, with Sequential execution, every transaction has to be validated by the entire network, resulting in a high level of energy consumption and increased workload for validators. Conversely, Parallel Execution adopts a fundamentally different approach: enabling the simultaneous processing of transactions. This approach significantly increases the network's throughput, enhancing performance and scalability.

If implemented properly, parallel EVMs could help in mitigating the high amount paid by users in gas fees usually associated with periods when there's surge in demand.

For instance, a popular NFT might lead to a spike in gas fees. As seen in the case of the Bored Ape Otherdeed NFTs mint, which led to gas fees on Ethereum skyrocketing.

Challenges With Implementing Parallel Execution

Parallel execution is a promising technique for enhancing blockchain performance, however, it requires careful design and consideration of the trade-offs involved. Parallel execution introduces complexity in terms of transaction scheduling, validation, and potential conflicts.

Furthermore, identifying transactions that aren't dependent is the major challenge with parallel execution. However, transaction dependencies are more apparent in some cases than others. Classic examples include trading assets on different DEXs and sending tokens to different recipients.

Transactions that cannot execute in parallel include cases of transactions such as executing a smart contract that depends on the result of a previous transaction. For example, when transferring multiple tokens to multiple recipients within a single transaction, it's crucial to ensure that either all transfers succeed or none do. Parallelizing such transactions could lead to partial completion, violating the atomicity principle and potentially causing inconsistencies in token ownership.

The Current Landscape

A couple of projects are championing the parallel EVM narrative. They include Monad, SEI, and NEON. In this piece, we'll delve into each of these projects briefly.

Monad

Marketed as an innovative Layer 1 smart contract platform that marks a new generation in blockchain scaling. Monad is one of the projects pioneering the parallelization of the EVM. Specifically, Monad aims to enable parallel execution for EVM transactions that don’t have common dependencies. In other words, transactions and blocks remain linearly ordered. By simply identifying transactions within that linear ordering that can be executed in parallel without disrupting the outcome. Monad’s long term target is the physical limit of bandwidth: ~400,000 TPS.

NEON

Neon EVM seamlessly blends the expansive developer base and established infrastructure of Ethereum with the lightning-fast and cost-efficient network of Solana, paving the way for a new era of dApps and smart contracts.

At its core, Neon EVM bridges the gap between these two powerful blockchain ecosystems. Developers familiar with Ethereum can leverage their skills and existing tools like Solidity and MetaMask with minimal migration headaches. This unparalleled compatibility ensures a smooth transition, while unlocking the advantages of Solana's architecture.

The true game-changer lies in Neon EVM's ability to leverage Solana's parallelized transaction execution. This unique feature significantly boosts transaction throughput and slashes costs, propelling Neon EVM to the forefront of performance and efficiency.

But the Neon EVM is more than just a speedy bridge. It also expands Ethereum's reach, connecting it to new user bases and vibrant liquidity pools within the Solana ecosystem. This symbiotic relationship benefits everyone: developers gain access to a wider audience and superior performance, while users enjoy the power and security of Ethereum paired with Solana's lightning-fast transactions.

SEI

SEI boasts a parallelized Ethereum Virtual Machine (EVM), a game-changer for developers familiar with the Ethereum ecosystem. This unique feature allows for simultaneous execution of smart contracts, dramatically boosting throughput and paving the way for rapid finality.

With its speed, security, and EVM compatibility, Sei becomes the ideal playground for building next-generation DeFi protocols, high-volume trading platforms, and cutting-edge NFT marketplaces. Imagine decentralized exchanges processing trades at a fraction of the cost, DeFi protocols reacting to market swings in real-time, and NFT minting happening faster.

Benefits of Parallel EVMs

The benefits of parallel EVMs are endless. The use of parallel EVMs would improve the speed, scalability, and efficiency of smart contract-based platforms. Here are some of the benefits.

Increased speed: If properly executed, parallel transaction execution leads to significantly faster processing times. This is particularly important for applications with high transaction volume, such as Decentralized exchanges and decentralized finance (DeFi) protocols.

Scalability: The ability to handle multiple transactions simultaneously enhances scalability. By sharing the processing load, they minimize energy consumption and reduce hardware strain, making blockchain applications more cost-effective and environmentally friendly. This translates to lower fees for users and a more sustainable future for the entire ecosystem.

Conclusion

The emergence of parallel EVMs is a quantum leap in the race for scalability. The recent inscription frenzy shows the urgent need for highly scalable blockchains, especially during periods of peak traffic as seen in the recent Ordinals frenzy. Taking a step further, Parallel EVMs represent a crucial step towards a future-proof infrastructure. Their modularity and flexibility allow them to adapt to new demands and integrate seamlessly with emerging technologies, paving the way for the next generation of decentralized applications.