The statement "Blockchains solved ordering and settlement, but left availability to chance" refers to the core trade-offs in blockchain design, often described as the "blockchain trilemma". While early blockchains (like Bitcoin) successfully used decentralized consensus to create a single, immutable, and ordered record of transactions (ordering and settlement), they did not guarantee that this data would remain highly accessible or readily available, leading to bottlenecks.
How Blockchains "Solved" Ordering and Settlement
Decentralized Ordering: Through proof-of-work or proof-of-stake, networks agree on the exact sequence of transactions, preventing double-spending without a trusted third party.
Finality & Settlement: Cryptographically secure, immutable ledgers enable near-instant, automated settlement, reducing the need for traditional clearinghouses (e.g., DTCC) and lowering counterparty risk.
Instant Verification: Transactions are verified by nodes as they are added, making the blockchain a "golden source of truth" for ownership.
Why Availability Was Left to Chance
In early ("monolithic") blockchain architectures, every node had to download and verify all data, which created significant limitations:
Scalability Bottlenecks: As the network grows, the sheer volume of data makes it difficult for all nodes to store and access it simultaneously.
Data Availability Risk: If a node does not have access to the complete data required for verification, it cannot confirm the legitimacy of transactions, leading to potential security risks.
High Costs & Congestion: When block space is limited, high demand for block space causes high fees and slow transaction speeds, hindering the availability of the network for users.
Shifting to Modular Solutions
To solve this, the industry is moving towards modular blockchains, which separate execution, consensus, and data availability into specialized layers. These solutions include:
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