Blockchain Trilemma - Crypto Academy S5W2- Homework Post for @nane15
Greetings everyone, I am delighted to be part of this week of the season five of this crypto season. I am therefore delighted to take part of our hardworking and noble professor in the person of @nane15. I have gone through the lesson and I am therefore moving ahead to make my homework entry.
Explain in your own words what the Blockchain Trilemma is.
The word Trilemma is simply the a situation in which one is to make a decision among three choices where by the three choices are cannot all be decided on and only two of them. This mostly applies to bringing up developmental projects or ideas on board. The tree options all can't work unless the two of these three. The Introduction of Blockchain to the ecosystem has been a great deal and has brought more benefits than faults. Blockchain has made happenings in the crypto world very clear and open so everyone can have a clear view of it which is the decentralized aspect of it. Also, the security involved in Blockchain cannot be compared to any and this is a great benefit of the Blockchain. Not forgetting how scalable this network type as it is able to accommodate a lot of transactions and process them or verify them as required. However, Blockchain has certain characteristics in which they are not been able to be solved in one network technology correctly or perfectly. This arises to what we call the Blockchain Trilemma and these characteristics are know as: Decentralization, Scalability and Security.
Moving further, one Mr Vitalik Buterin who brought the Ethereum to limelight named this challenge of Blockchain as the Blockchain Trilemma. Where this is simply a situation in which a Blockchain technology network is able to showcase all these three characteristics and bring solutions to them perfectly. This has made a lot of Blockchain inventors to either focus Decentralization and that of Security and then for go the Scalability or the other way round. They are forced to concentrate and bring solutions to two of these characteristics and then do away with one.
For instance when we look at the Scalability aspect, Blockchain should be able to make way for the happening of numerous transactions and also at a very low cost. That is, the network should be able to make room as transactions turn to increase day by day. Most networks are not able to meet this requirement hence a problem. When we look at the Decentralized aspect, this is simply the situation whereby all happenings in the network are expected to made clear for everyone or user to have a view of it. Or there will no be any central authority where the affairs of the network will be headed by such a fellow. That is to say, there should be freedom within the network technology. Last but least is the aspect of the Security. This happens to a vital aspect of the network as this entails the funds of users and hence needs to kept save from hackers or fraudsters. The Blockchain is expected to provide the best of security to various users so as to help keep save of their funds.
These three characteristics if been all solved in a particular blockchain network technology then the thing of Blockchain Trilemma won't exits again.
Is the Blockchain Trilemma Really a Trilemma?
Well, with the concept of Trilemma the Blockchain Trilemma is not qualified to be classified as one since these problems have been solved by certain blockchain technology. This is because with an actual Trilemma it will be difficult to get solutions to all the Three problems. However with the Blockchain aspect, certain network have made sure the security of their network is very great as it makes it decentralized by giving the chance for users to have their keys and do whatever they want. They also make sure nodes are been in control of their private keys. the Scalability aspect is also solved in way that numerous transactions to occur on a single blockchain network at the same time.
This makes the Blockchain Trilemma not a Trilemma as such. Blockchains like that of Solana have been able to bring solutions to all these characteristics.
Define the following concepts in your own words:
A. Decentralization
B. scalability
C. Blockchain Security
The word or the term Decentralization is simply freedom. That is, in Blockchain network technology decentralization is simply giving the duty if authority to various network users involved in the technology. That is, this also makes various happenings in the blockchain network very open and clear to every individual to have a look and also have control over the affairs of the holdings. Moving further, with regards to making of decisions, the authority is been given to various distributed nodes involved in the network. The occurrence of various transactions in the blockchain network do happen without any hindrance of third party or so. This makes the blockchain network secured as very node as the control over it's private keys and other activities.
Scalability is simply the situation in which the Blockchain network will be able to cater for happening of numerous transactions and other operational activities of the network at the same period of time. That is, when the is increase in transactions and the network must be able to be more scalable by verifying those transactions within a small period of time. That is, the network must have a high amount of speed to process and verify the transactions. Not forgetting the verification of blocks among the network as well. This entails the scalability of the blockchain network.
With this term, it simply the ability of the process of the Blockchain network to be able to prevent hackers or invaders from attacking the network. The blockchain has to provide the best of security so as to prevent people from been hacked by their holdings. This shows how the blockchain network is prone to hackers and for that matter should be very effective. This is help save the users against hackers.
Based on your knowledge, explain at least two viable solutions to the challenges posed in the Blockchain Trilemma.
One way of which solutions can be brought to the challenge of the Blockchain Trilemma is the concept of the Proof of Stake. As the consensus algorithm brings solutions to the problems of the Proof of work and as well challenges of the Scalability. This will be of great deal if implemented in the Blockchain technology. This will help verify and process numerous transactions at a little time frame and hence increase the scalability. With this algorithm various individuals are been appointed by the investors whereby the power is been delegated to them to verify and validate various transactions that do occur in the blockchain. That is, these validators are been delegated to accomplish this task as a result of their contribution to the network. this will go in along run to increase the scalable nature of the network technology as Ethereum has already taken that bold step and will soon be moving further more. So these validators are taking care of the transactions happening then other challenges can be looked out for.
Another process that will be of great help to curb the issue of Blockchain Trilemma is that of Sharding. This is simply the situation whereby the network technology is been divided into parts and these parts are called shards. This will therefore aid them to take care of transactions happening in a great way and a faster way as well. This concept will go in a great way to help increase the scalable nature of the blockchain technology as well.
The introduction of Sidechains to that of the mainchains will be of great help to the challenge of the Blockchain Trilemma. That is, with this concept, the various transactions that do occur on the sidechains will be made public and that be a way of verifying these transactions. By so happening, in a case of a security attack or hack, it will not have an effect on the mainchain and hence the network will be protected.
In a nut shell, Blockchain has really been a great initiative to the ecosystem and has made the transactions and other activities to occur very fast and simple. The characteristics of this network technology which includes that if the Decentralized, Scalability and that of Security aspects which has poised to be challenges to the network so as to solved all these at a go. These characteristic which come together ti make up the Blockchain Trilemma will be solved in due time as solutions are been looked out for.
I am very grateful to professor @nane15 and congratulate him for his promotion. Best regards to you.