Blockchains can only handle a limited number of transactions per second. The Bitcoin network, for example, can process around seven transactions per second. If blockchain technology is to be adopted globally, it should be able to handle much more data, and at faster speeds, so that more people can use the network without it becoming too slow or expensive to use. However, the fundamental design of many decentralized networks means that increasing scalability tends to weaken decentralization or security. This is what’s known as the blockchain trilemma. Developers looking to solve this problem are experimenting with different consensus mechanisms and scalability solutions, such as sharding, sidechains, and state channels.
Introduction
In basic terms, a blockchain is a distributed digital database. Blocks of data are organized in chronological order. The blocks are linked and secured by cryptographic proofs. The implementation of this technology across different industries is already changing how we work and live.
The idea is that decentralized and secure blockchains allow for a world where we don’t need to rely on third parties for networks or markets to function. However, experts generally agree that if this tech is to be more widely adopted there’s a core problem that needs solving. The problem in question is known as the “blockchain trilemma”.
This term was popularized by Ethereum co-founder Vitalik Buterin. For it to make sense, you need to be aware of three different elements that are desirable in a blockchain: decentralization, security, and scalability. The blockchain trilemma refers to the idea that it’s hard for blockchains to achieve optimal levels of all three properties simultaneously. Increasing one usually leads to a weakening of another.
Continue reading: https://academy.binance.com/en/articles/what-is-the-blockchain-trilemma
Introduction
In basic terms, a blockchain is a distributed digital database. Blocks of data are organized in chronological order. The blocks are linked and secured by cryptographic proofs. The implementation of this technology across different industries is already changing how we work and live.
The idea is that decentralized and secure blockchains allow for a world where we don’t need to rely on third parties for networks or markets to function. However, experts generally agree that if this tech is to be more widely adopted there’s a core problem that needs solving. The problem in question is known as the “blockchain trilemma”.
This term was popularized by Ethereum co-founder Vitalik Buterin. For it to make sense, you need to be aware of three different elements that are desirable in a blockchain: decentralization, security, and scalability. The blockchain trilemma refers to the idea that it’s hard for blockchains to achieve optimal levels of all three properties simultaneously. Increasing one usually leads to a weakening of another.
Continue reading: https://academy.binance.com/en/articles/what-is-the-blockchain-trilemma
