The Blockchain Trilemma refers to a widely held belief that decentralized networks can only provide two of three benefits at any given time with respect to decentralization, security, and scalability.
What is the blockchain trilemma by vitalik?
The blockchain trilemma, as coined by Ethereum ETH -0.89% co-founder Vitalik Buterin, refers to the trade-off between three critical aspects of blockchain technology: security, scalability and decentralization.
Why does the blockchain trilemma exist?
Blockchains must maintain the elements of decentralization, security, and scalability. Improving one of these areas often results in sacrificing another. Creating this balance has been a challenge for developers for as long as blockchain technology has existed, and is often referred to as the blockchain trilemma.
What does blockchain trilemma exclude?
Trilemma in blockchain refers to the infamous problem of simultaneously not delivering the three critical aspects of a ledger: security, scalability, and decentralisation. While security and scalability hinder decentralisation, security is jeopardised if the scalability is escalated.
What are the 4 major components of blockchain?
The are 4 elements of a Blockchain network:
How do you solve the blockchain trilemma?
Consensus protocol improvements: The most all-encompassing approach to solving the blockchain trilemma is to simply change the consensus mechanism that a network relies on. This can be done by shifting from a proof-of-work (PoW) consensus model to a proof-of-stake (PoS) model, for example.