What is Blockchain Trilemma? What are its 3 pillars?
Blockchains are known for their vision and targets. It is very important to see the project’s priority which can vary among blockchains. Usually, projects rotate around three core concepts: #decentralization, scalability, and security.
Termed by Vitalik Buterin, The #Blockchain Trilemma addresses the challenges developers face in creating a blockchain that is scalable, decentralized, and secure — without compromising on any facet.
The Blockchain Trilemma is based on the belief that decentralized networks can only possess two of the three benefits of decentralization, security and scalability at any given time. In this article, we talk about how hard it is to provide all three things simultaneously. We talk about how the decentralized ecosystem is constantly changing, leading to many Layer-1 and Layer-2 solutions working to solve the Trilemma for good.
Blockchain technology is beneficial in many fields, from #finance to #art. However, decentralized networks have different problems than centralized networks because of how they are built. In the 1980s, computer scientists came up with the CAP theorem to describe what might be the biggest of these problems. The CAP theorem says that decentralized data stores, like blockchain, can only guarantee two of the following things simultaneously: #consistency, availability, and #partition tolerance (CAP). This theorem has become the Blockchain Trilemma in modern distributed networks. The Blockchain Trilemma is the idea that public blockchains must give up either security, decentralization, or #scalability.
Central network infrastructures are based on the client-server model, but public blockchain networks use decentralized consensus mechanisms. Public blockchains manage a widely dispersed network of nodes to reach a consensus on data over an infrastructure that can’t be attacked from the outside and keeps access fair and open for everyone. It’s hard to do. Blockchains that are fast and decentralized but less safe are more likely to be hacked, which is not a good long-term solution.
Blockchains are frequently compelled to make compromises that prohibit them from accomplishing all three objectives:
Decentralization: The development of a blockchain system that does not rely on a single point of control.
Secure: The blockchain system can work as planned while defending itself against assaults, flaws, and other unforeseen concerns.
Scalability: The ability of a blockchain system to accommodate an increasing volume of transactions.
Let us discuss these factors in detail:
What is Decentralization?
The underlying idea of blockchain technology is decentralization, which pushes projects throughout the ecosystem. Decentralized procedures and technology eliminate the role of intermediaries across industries and manifest in various ways. For example, decentralized finance (#DeFi) platforms can distribute profits and governance to users and the broader community by removing #banking institutions from financial instruments.
On a more fundamental level, decentralized networks use a consensus mechanism. In other words, no single institution can control or censor the information that floats through them. Obtaining optimal decentralization, on the other hand, tends to reduce network throughput. Transaction speeds may slow as more miners secure a Proof-of-Work (PoW) network through consensus, which is considered a barrier to mainstream adoption.
On a blockchain network, to boost network performance, there is an incentive to lower the geographical, numerical, or both distribution of blockchain nodes. This shift toward more centralization, however, decreases security on PoW networks. When consensus is reached on an open network with restricted nodal distribution, a 51% attack is more likely since hackers can quickly accumulate the requisite hashing power. Hackers can hijack a network and influence transactions for financial advantage by overwhelming it. Blockchain security is a crucial network component that must be noticed.
What is Scalability?
There is an incentive to reduce the geographical, numerical, or both distributions of blockchain nodes to improve network performance on a blockchain network. This shift toward more centralization, however, decreases security on PoW networks. When consensus is reached on an open network with restricted nodal distribution, a 51% attack is more likely since hackers can quickly accumulate the requisite hashing power. Hackers can hijack a network and influence transactions for financial advantage by overwhelming it. Blockchain security is a crucial network component that must be noticed.
Why is it crucial to consider Blockchain Trilemma?
The Trilemma is a methodology for conceptualizing the different issues that blockchain technology faces. No law says the three aspects cannot coexist. However, organizations have experimented with several ways to maximize decentralization, scalability, and security.
We at Jumbochain can explain the concept of Trilemma in the form of a pyramid. The fundamental layer or base layer would be security. The other two layers, decentralization and scalability, could survive with the security layer. We are working on a constructive approach, allowing developers to code confidently to ensure that Jumbochain will be the most secure blockchain in the world.
In the second part of this article, we will discuss how we can solve the blockchain trilemma for layer 1 and layer 2 blockchain solutions.
About the Author:
JumboBlockchain is the layer 1 blockchain protocol with three patents applied.
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