On July 17, Monad announced on X platform that it will soon launch its EVM-compatible testnet, and plans to establish a partnership with the digital wallet platform Backpack on the first day of the testnet launch. This collaboration signifies Monad's continued expansion in technology integration and ecosystem development.
Monad Labs completed a $19 million seed funding round in February 2023, led by Dragonfly Capital, and secured $225 million in funding led by Paradigm in April 2024.
These funds not only accelerate the technical development of Monad but also provide solid financial support for its upcoming testnet.
The collaboration is notable: Can Monad and Backpack ignite a spark of value?
The partnership between Monad and Backpack on the first day of the testnet launch marks a significant combination at both the technical and market levels.
This collaboration first enhances technical synergy by integrating the Backpack wallet into Monad’s EVM-compatible blockchain. This integration not only expands Monad’s user base but also provides Backpack users with a new high-performance platform for testing smart contracts and applications. This helps both platforms deliver higher quality services while collecting valuable user feedback to optimize network performance and user experience.
In terms of market impact, this collaboration has strengthened the visibility and competitive edge of both parties' brands. By mutually referring users, both have the opportunity to expand their user base and market share. In addition, incentive measures such as airdrops and trading discounts may further promote user engagement and participation, accelerating ecosystem growth and expansion.
As a prominent L1 project, Monad achieves outstanding technical integration performance.
In the blockchain industry, the Ethereum Virtual Machine (EVM) has become the recognized standard virtual machine, supporting numerous innovative projects like Curve, Uniswap, and Maker. However, limitations of the EVM, such as its reliance on the Solidity language and the sequential transaction processing method, are gradually becoming apparent, prompting exploration of alternative virtual machine technologies. In this exploration, Monad stands out among many AltVM projects with its MonadDb, capable of handling 10,000 transactions per second, and its vibrant community culture. We often liken Layer 1 to a city, with its core operators akin to a service-providing government. Whether a project can attract developer investment and user participation largely depends on its cultural atmosphere and service efficiency.
MEV is an inherent feature of blockchain design, and Monad explores the possibility of building robust MEVA infrastructure under a high-performance, low-latency blockchain framework. Drawing from experiences of Ethereum and Solana, Monad designs MEVA with close integration with blockchain underlying mechanisms, especially in the consensus execution phase.
Parallel execution technology is crucial for Monad to achieve high throughput. This technology allows the system to process multiple transactions simultaneously, rather than the traditional sequential execution method. While Monad's blocks maintain linear order similar to Ethereum's, adopting an optimistic parallel execution strategy significantly boosts processing speed while ensuring transaction correctness.
Furthermore, Monad employs MonadDb, a parallel database crucial for effectively enhancing blockchain performance. Traditional sequential databases are akin to toll stations with single lanes, whereas MonadDb facilitates multi-lane traffic, greatly improving data processing efficiency.
Monad also introduces asynchronous execution and consensus mechanisms, separating execution from the consensus process. This allows the entire system to utilize resources more efficiently, further enhancing performance. This design philosophy draws from standard practices in traditional computer science but marks its first application in blockchain technology.
As a comprehensive Web3 financial services platform, Backpack will offer high-quality services for Monad.
Backpack is a comprehensive digital asset management platform offering multi-chain wallet services and centralized exchange (CEX) functionalities, primarily serving multiple jurisdictions globally. It supports mainstream blockchain networks like Solana and Ethereum while focusing on providing highly secure asset management solutions. Backpack wallets are favored for their non-custodial nature and emphasis on asset security. Particularly in safeguarding non-fungible tokens (NFTs), its unique "Collectible Lock" mechanism automatically rejects abnormal transaction requests, providing additional security for users' valuable collections.
Beyond being a tool for storing and trading cryptocurrencies, Backpack actively serves as a platform for decentralized applications (DApps), notably through its xNFT feature, enabling users to access and interact with hundreds of decentralized applications. This expands user interaction and application accessibility while providing fundamental wallet services.
Technologically, Backpack employs Multi-Party Computation (MPC), a technique used in cryptocurrency wallets to ensure the security and confidentiality of transactions. This technology significantly enhances user confidence during transactions by ensuring that even in multi-party environments, users' private key information remains secure and confidential.
Backpack's market journey has been marked by significant ups and downs. In 2022, it was launched by Coral, the developer of the Solana framework Anchor, and successfully raised $20 million in funding led by FTX Ventures and Jump Crypto. However, following the FTX incident, Backpack faced challenges with frozen funds. Despite this, it successfully launched the highly popular xNFT series, Mad Lads, within the Solana ecosystem, becoming a focal point in the market.
