Know about the Blockchain Love Triangle? : The Trilemma
GM!
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Today we have some relationship drama that’s been dragging for a long time in crypto and is yet to be solved.
Ever wondered why there are so many different blockchains and L2 chains on top of them?
It all comes down to the blockchain's search for true love between three fundamental pillars:
Security 👮♀️: Security is the foundation, the girl, in our love triangle. She represents the trust and safety that every blockchain project seeks to provide. In Web3 security measures are the fundamental pillar that protects against hacks, fraud, and other threats. This girl ensures that our digital assets are safe and sound.
Scalability 🏃♂️: The ambitious go-getter guy trying to win over the blockchain. Think of him as the visionary, always seeking to make the blockchain faster, more efficient, and capable of handling a massive number of transactions. Scalability is crucial for the widespread adoption of blockchain technology.
Decentralization 👨💼: The dependable, loyal partner promising trust to the blockchain. Decentralization is the guy who provides philosophical backbone to the blockchain ecosystem. He's all about spreading the power, ensuring that no single entity has control over the network. Decentralization is what makes blockchain truly revolutionary, as it fosters trust through distribution.
The trilemma is that, it's really hard for a blockchain to maximize all three qualities simultaneously. At an instance, a project can only focus on any of the two properties.
Security is the fundamental pillar of a blockchain architecture, without security any revolutionary blockchain development is of no use. When a project focuses on Decentralization and Security, it looses the string of Scalability.
When a project is developed with a focus on Scalability and Security, it does not check the parameters of an ideal decentralized project.
Ethereum prioritizes both decentralization and security but suffers congestion and high gas fees due to scaling limitations.
Solana delivers scalability through high throughput but at the cost of some decentralization with fewer validating nodes.
Each blockchain project makes design choices favoring certain attributes over others based on their goals.
Layer 2 is said to be solving the problem of Scalability while Security and Decentralization handled by the parent Layer 1 chain.
At the end of the day, no single blockchain on it’s own has yet achieved the perfect harmony with security, scalability and decentralization.
See ya!
Until Next time!