e23 has completed Phase 1 of MerdekaL1, a sovereign Layer 1 blockchain developed in Malaysia for regulated and high-integrity environments.
All 11 software modules planned for Phase 1 have been built and tested. The result is a functioning pre-pilot developer network that can operate across multiple validators, finalise blocks, transfer value and execute Ethereum smart contracts.
MerdekaL1 is built from the ground up in Rust. Its consensus and networking incorporate post-quantum cryptography standardised by the US National Institute of Standards and Technology (NIST), alongside classical cryptography.
It is also designed to be crypto-agile and Ethereum-compatible.
Phase 1 establishes the core network. Identity, compliance, governance and further pilot-hardening capabilities come next.
What is MerdekaL1?
MerdekaL1 is a sovereign Layer 1 blockchain developed by e23 in Malaysia for regulated and high-integrity environments.
It is designed to provide a shared digital ledger that authorised institutions can independently verify, rather than requiring one organisation to control the definitive record.
The network combines five core design principles:
- Sovereign governance under Malaysian law
- Post-quantum secured consensus and networking
- Crypto-agility
- Ethereum compatibility
- A compliance-native architecture
MerdekaL1 is not positioned as a public retail blockchain or speculative token network.
It is currently a pre-pilot developer network, not a production mainnet. It has not completed an independent security audit, and no external financial institution is currently operating on the network.
What does "sovereign blockchain" mean?
For MerdekaL1, sovereign does not mean state-operated.
It means the blockchain is designed to operate under Malaysian law and to be collectively governed by participating institutions.
Instead of depending on one organisation to maintain the definitive database, authorised participants can independently operate nodes, verify records and participate in the governance of the network.
The objective is infrastructure where trust is supported by the network architecture and governance model rather than concentrated entirely in a single operator.
Why build post-quantum cryptography into a blockchain?
Financial infrastructure can remain operational for decades. The cryptography protecting that infrastructure therefore needs to be capable of evolving as security requirements change.
Quantum computing creates a particular long-term challenge because sufficiently capable quantum computers could threaten widely deployed public-key cryptography.
NIST finalised its first three post-quantum cryptography standards in August 2024, establishing standards intended to help organisations begin transitioning towards quantum-resistant cryptography.
MerdekaL1 approaches this as an infrastructure design requirement rather than a future retrofit.
Post-quantum digital signatures
Validator votes on MerdekaL1 use both classical Ed25519 signatures and ML-DSA-65.
ML-DSA is NIST's Module-Lattice-Based Digital Signature Standard under FIPS 204.
Both signatures must verify.
This combines classical and post-quantum cryptography within the consensus process rather than relying solely on either approach.
Post-quantum key establishment
Communication between MerdekaL1 nodes uses hybrid key establishment incorporating ML-KEM-768 alongside classical cryptography.
ML-KEM is NIST's Module-Lattice-Based Key-Encapsulation Mechanism Standard under FIPS 203.
MerdekaL1 then uses AES-256-GCM for authenticated encryption.
MerdekaL1 is designed for crypto-agility
Adopting post-quantum cryptography addresses one part of the problem.
The longer-term requirement is the ability to change cryptography again.
Crypto-agility is the ability of a system to replace or upgrade cryptographic algorithms without rebuilding the entire underlying infrastructure.
MerdekaL1 identifies the algorithms used by its keys, signatures and addresses. This creates a pathway for algorithms to be changed through network governance as standards, threats and institutional requirements evolve.
For long-lived infrastructure, this reduces dependence on the assumption that today's cryptographic choices will remain appropriate indefinitely.
Critical infrastructure should not be built today only to be cryptographically retrofitted tomorrow.
Is MerdekaL1 compatible with Ethereum?
Yes. MerdekaL1 supports standard Ethereum smart contracts and development tooling.
The network runs the Ethereum Virtual Machine (EVM) and exposes standard Ethereum JSON-RPC interfaces.
This means existing Ethereum development tools including MetaMask, Hardhat, Foundry, ethers and viem can interact with MerdekaL1.
Compatibility has been verified through automated end-to-end testing covering wallet connectivity, smart contract deployment, contract calls, event logs and error reporting.
This design allows MerdekaL1 to introduce its own security and governance architecture without requiring developers to abandon the Ethereum development ecosystem.
One ledger, two transaction rails
MerdekaL1 supports two transaction rails on one shared ledger.
The first supports Merdeka-native accounts, designed with a pathway towards post-quantum signatures.
The second provides Ethereum compatibility for existing smart contracts, wallets and development workflows.
Both operate against the same account state.
A Merdeka-native account can therefore interact with an Ethereum-style address without creating a separate blockchain or isolated ledger.
How does Merdeka Consensus work?
MerdekaL1 uses its own consensus mechanism, called Merdeka Consensus.
Consensus is the process through which participating validators agree on which transactions become part of the blockchain's permanent record.
Merdeka Consensus uses established Byzantine fault-tolerant agreement principles and was implemented specifically for MerdekaL1.
Once two-thirds of validators agree on a block, the block is final.
There are no subsequent blockchain reorganisations or additional confirmation periods.
The network currently operates with a configurable default block interval of approximately one second.
In a four-validator configuration, the consensus mechanism is designed to continue operating if one validator fails.
For institutional infrastructure, the important property is not simply speed. Multiple authorised institutions can independently verify and agree on a common record without placing complete control of that record with one participant.
What did MerdekaL1 Phase 1 deliver?
Phase 1 establishes the core MerdekaL1 network.
According to e23's engineering review as of 2 October 2026, Phase 1 delivered:
| Phase 1 metric | Status |
|---|---|
| Planned software modules | 11 of 11 built and tested |
| Rust source and test code | ~19,500 lines |
| Automated tests | 119 passing |
| Default block interval | ~1 second, configurable |
| Consensus finality | At block production once the required validator agreement is reached |
| PQC algorithms | ML-DSA-65 and ML-KEM-768 |
| Ethereum compatibility | EVM Cancun |
| Native address format | mrd1... |
Testing has also covered validator failure and rejoining, late-joining full nodes and adversarial consensus scenarios.
These are engineering milestones, not a production launch.
MerdekaL1 has not completed an independent security audit and is not currently hosting external financial institutions.
We believe it is important to report progress as it stands and distinguish clearly between what has been built, what has been tested and what remains on the roadmap.
What comes after Phase 1?
The next priority is the identity and compliance layer.
The objective is to connect wallets to known participants so network participation can be controlled for a regulated environment.
This is part of MerdekaL1's intended compliance-native architecture.
Following this, development will focus on pilot hardening, including longer multi-machine testing, validator failure and recovery, containerised deployment, monitoring and live wallet testing.
Further roadmap items include:
- On-chain network governance
- National identity integration
- WASM runtime capabilities
- Native developer tooling
- Native wallet capabilities
These capabilities are planned and are not currently deployed.
Building blockchain infrastructure for institutional use
As financial infrastructure becomes more programmable, the important questions go beyond whether a blockchain can process transactions.
Who governs the infrastructure?
Who is allowed to participate?
Can participating institutions independently verify the ledger?
Can existing applications interoperate with it?
Can the underlying cryptography change as security requirements evolve?
These architectural choices become significantly harder to change once infrastructure is already in production.
MerdekaL1 is being developed around these questions from the foundation.
Phase 1 demonstrates the core network. The next stage is to harden that foundation and build the identity, compliance and governance capabilities required for future institutional pilots.
MerdekaL1 is being developed by e23 in Malaysia as sovereign, post-quantum secured and crypto-agile blockchain infrastructure for the next generation of digital finance.
One milestone completed. The next phase begins.
Frequently asked questions about MerdekaL1
What is MerdekaL1?
MerdekaL1 is a sovereign Layer 1 blockchain developed by e23 in Malaysia for regulated and high-integrity environments. Its core network combines post-quantum secured consensus and networking, crypto-agility and Ethereum compatibility.
Who developed MerdekaL1?
MerdekaL1 is developed by e23, a Malaysia-based digital infrastructure company building infrastructure for financial institutions, government and regulated digital asset environments.
Is MerdekaL1 a Malaysian blockchain?
Yes. MerdekaL1 is developed in Malaysia and is designed to operate under Malaysian law through consortium governance by participating institutions.
Is MerdekaL1 post-quantum secured?
MerdekaL1's consensus and networking incorporate post-quantum cryptography alongside classical cryptography. The current implementation uses ML-DSA-65 for post-quantum digital signatures and ML-KEM-768 for post-quantum key establishment. ML-DSA and ML-KEM are NIST-standardised post-quantum cryptographic algorithms.
Is MerdekaL1 Ethereum compatible?
Yes. MerdekaL1 supports standard Ethereum smart contracts and tooling. Compatibility has been verified through automated testing. Live wallet testing remains part of the pilot-readiness work.
Is MerdekaL1 a public blockchain?
MerdekaL1 is not positioned as a public retail blockchain. It is being designed for regulated and high-integrity environments with authorised participation.
Does MerdekaL1 have a token?
MerdekaL1 does not have a speculative token. Network fees are designed as a governed parameter rather than a market-driven token mechanism.
Is MerdekaL1 production-ready?
No. MerdekaL1 is currently a pre-pilot developer network. Phase 1 of the core network is complete, while compliance, pilot hardening, governance and other roadmap capabilities remain under development.
What comes next for MerdekaL1?
The next development priorities are the identity and compliance layer, followed by pilot hardening and network governance. Further roadmap items include national identity integration, WASM capabilities and native developer and wallet tooling.
Follow the MerdekaL1 build
Phase 1 establishes the core network. Development now moves towards the identity, compliance, governance and pilot-hardening capabilities required for future institutional pilots.
For a shorter overview of the thinking behind the build:
Read the MerdekaL1 Phase 1 update on LinkedIn →