Blockchain Trilemma
The Blockchain Trilemma, also known as the “Scalability Trilemma” or “Crypto-Trilemma”, is a concept that describes the inability of public blockchains to simultaneously achieve scalability without compromising either security or decentralization. The term was coined by Ethereum co-founder Vitalik Buterin in 2018 and has since become an important consideration for blockchain engineers when designing new protocols.
The trilemma refers to three competing objectives: scalability, security, and decentralization. Scalability refers to a system’s ability to handle large numbers of users; it is often measured in transactions per second (TPS). Security requires that data stored on the blockchain remain immutable and tamper proof. Decentralization requires that nodes are not controlled by any single entity but instead are distributed among many different entities who have no special privileges compared to one another.
Due to the inherent limitations of current technologies such as Proof-of-Work consensus algorithms, achieving all three goals at once is virtually impossible. It is therefore up to developers and protocol designers to determine which two out of three should be prioritized over the third depending on their specific needs. For example, Bitcoin prioritizes security and decentralization over scalability while projects like Zilliqa prioritize speed over both security and decentralization.
Ultimately, there will likely never be a one size fits all solution for achieving optimal performance across all three objectives – hence why this dilemma continues to present challenges for those involved with developing decentralized protocols today
