The Blockchain Trilemma: Why Decentralization, Security, and Scalability Can’t Coexist
The Blockchain Trilemma poses a challenge for blockchain technology, where decentralization, security, and scalability can’t all be achieved simultaneously. Imagine it like a three-legged stool—each leg represents one attribute. If you compromise on one, the entire system becomes less stable.
For instance, Bitcoin excels in decentralization and security but sacrifices scalability, leading to slower transactions. Ethereum is evolving towards Ethereum 2.0 to address scalability while striving to preserve its decentralization and security.
This concept is crucial for traders, developers, and investors as it impacts the future potential and adoption of blockchain projects. Innovative solutions like Layer 2 protocols are emerging to balance these trade-offs and improve scalability without undermining security and decentralization.
