{"id":94583,"date":"2023-08-22T08:36:54","date_gmt":"2023-08-22T08:36:54","guid":{"rendered":"https:\/\/www.techopedia.com\/?post_type=definition&p=94583"},"modified":"2024-01-23T08:35:04","modified_gmt":"2024-01-23T08:35:04","slug":"blockchain-trilemma","status":"publish","type":"definition","link":"https:\/\/www.techopedia.com\/definition\/blockchain-trilemma","title":{"rendered":"Blockchain Trilemma"},"content":{"rendered":"

What is the Blockchain Trilemma?<\/span><\/h2>\n

A blockchain trilemma, also known as the “scalability-security-decentralization trilemma,” refers to the challenge faced by blockchain<\/a> networks in trying to simultaneously optimize three key aspects: scalability<\/a>, security, and decentralization<\/a>.<\/p>\n

The term can originally be credited to Ethereum<\/a>\u2019s creator, Vitalik Buterin.<\/p>\n

Why is It Important?<\/span><\/h2>\n

To understand it better, picture balancing a social life, work, and sleep \u2013 most find it challenging to maintain all three at once.<\/p>\n

The blockchain trilemma is similar in so far as many blockchain networks can do one or two of the qualities well \u2013 but to this day, there is yet to be a blockchain that masters all three aspects.<\/p>\n

Why so? Let\u2019s break down each concept to clarify.<\/p>\n

\n\n\n\n\n\n\n
Feature<\/b><\/td>\nDescription<\/b><\/td>\n<\/tr>\n
Decentralization<\/span><\/td>\nThis refers to how control is dispersed from a centralized authority to multiple participants or nodes across a network. Think of it as the democratization of governance \u2013 no single entity, such as a company or government, holds absolute power.<\/span><\/p>\n

In blockchain’s context, it means individual<\/span> nodes<\/span><\/a> (validators) around the world have control rather than a singular authority \u2013 creating a decentralized governance system for blockchain ecosystems.<\/span><\/td>\n<\/tr>\n

Security<\/span><\/td>\nWhile blockchain is notably secure, it’s not invulnerable to notorious techniques such as<\/span> 51% attacks<\/span><\/a>. In this instance, if an attacker gains control over 51% of the network, they can alter the blockchain and manipulate transactions, giving rise to the term “51% attack.” The more decentralized a network (i.e., the more nodes), the harder such attacks become, thus making the system more secure.<\/span><\/td>\n<\/tr>\n
Scalability<\/span><\/td>\nJust as flourishing businesses must grow without compromising the quality of their product, blockchain networks need to be able to process more transactions at a higher speed as they expand to meet network demand. However, increasing decentralization can hamper scalability, primarily because decentralized networks require more consensus, slowing down transaction speeds across the wider network.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

Therefore, the blockchain trilemma can be seen as a balance between ensuring democratic ownership of the network while maintaining security integrity amid ecosystem-wide efforts to scale.<\/p>\n

Solutions to the Blockchain Trilemma<\/span><\/h2>\n

Given the complex nature of the blockchain trilemma, numerous projects have responded with innovative solutions aimed at addressing this industry challenge. Some of these include:<\/p>\n