Crypto Academy / Season 5 / Week 2 / [Beginner Course] - Blockchain Trilemma
It is a new blessed week in the Steemit Crypto Academy. It is a great pleasure to me to participate in this week lecture delivered by professor @nane15 on the topic Blockchain Trilemma. This is an interesting topic and I really understood the lecture to the best of my knowledge. Below is my homework task entry for the course.
Explain in your own words what the Blockchain Trilemma is?
To begin with, it necessary for us to appreciate the relevance of blockchain protocol into the crypto world. Blockchain technology has significantly transformed the way of life and activities in the world today. Unlike the old system of banking in the central form, blockchain has invented a decentralized banking system which is transparent and accountable and the security is well enforced from fraudulent activities through the use of the blockchain protocol.
The blockchain protocol is a database system which is distributed among the nodes of a digital system across the globe. This ledger stores information in way in which it cannot be manipulated and deleted on the computer system. This blockchain protocol enables users to perform transactions efficiently and effectively which is cost effective on a decentralize form thus without any central authority or passing it through intermediary channels before confirmation of transaction.
All this is as a result of cryptocurrencies, what I meant is that, crypto technology is what effectively uses this blockchain network to transformed the stress, insecurity and centrality of management of the central bank into a standardize blockchain protocol, thanks to the almighty BITCOIN technology having it being the first blockchain to be successfully mined.
All this positive and relevant impact of the blockchain technology, just like other creatures on earth it still encounters some challenges in its functions. This challenges are some of the reasons why some countries have not accept the blockchain system. The system faces challenges as in data processing, data storage and other relevant aspect in its operation. This is however observe that when this problem is given the appropriate attention thus fixing this technical problems, it will help convince other countries to patronize blockchain technology across the globe.
For instance, people will absolutely be convince to use the decentralized blockchain other than using the central banking practice.
The word ‘tri’ means three (3), this is the said that Blockchain Trilemma is a composition of three different characteristics. This features then makes up the whole concept of the blockchain trilemma and this are Decentralization, Scalability and Security. This came to notice that the founder of the Ethereum coin Vitalik Buterin was the man behind the idea of the blockchain trilemma.
From his perspective, this are terminologies that try to explain the challenges involve for a single system to perform the task of these mention characteristics at the same time.
As explain by the professor, dilemma is making a choice from two options while trilemma is making a dual choice from three options. The trilemma is a made up of decentralization, scalability and security and this three options can only be dual combine at a time when developing blockchains.
This means that one feature must be sacrifice as a trade-off for the other two features to be used at a time. Having experiencing this challenges, projects that are currently on the decentralized system has acknowledge some wide range issues and the possible solutions that will help curb the problems with regards to trilemma. Below are the possible options to look to enable curb this challenges;
Decentralization: the concept of decentralize management thus blockchain should be distributed across all the system users other using intermediaries’ or central authority.
Scalability: the blockchain protocol should enable users or clients to perform wide range of transaction without any inconveniences thus by increasing the fees (charges) and the number of transactions.
Security: the blockchain protocol provide defensive mechanisms to prevent malignant institutions or organization to hijack the system.
Although, this appear to be an easy technique to archived but many other faculty of research and organizations denied it and believed that it is impossible to be achieved, even not in the near future. As many other developers and researchers still have the faith in blockchain and belief that the system will be able to achieve all the three possible options to solve the issue of BLOCKCHAIN TRILEMMA.
Is the Blockchain Trilemma Really a Trilemma?
The trilemma concept is a composition of three important features that is observe to be a difficult task to operate simultaneously under one system. But looking at the blockchain network, it is empirically observed that there are opportunities or chances on the blockchain to improve. Day in day out, developers keep on inventing new blockchains protocols and so far as knowledge keep on expanding, the new interventions are working closely to fix the problem on how to simultaneously operate the three features together on the same blockchain network. However, we have not encounter any prove that is backing fact concerning the blockchain trilemma theory.
Every moment, every second, researchers and developers are on projects just to find a solution to these blockchain trilemma challenges, and within no time or in the near future, this issue will be solved from my opinion base on the that fact. Although, we cannot pinpoint exactly a blockchain trilemma system that has been through all the three features and this means none exist yet. So from here, looking at how difficult the three essential features finds it to operate under the same blockchain network, this gives me a clue that, the term trilemma maybe acknowledging how it is so difficult for the three essential features to function simultaneously.
So from this, I can ideally conclude that the Blockchain Trilemma is not really a trilemma because several developers and researcher still strongly believe per their study that they can bring an invention for a search blockchain network thus combining all the features to function simultaneously. Lastly, this also maybe referring to a terminology to acknowledge the relevant of the three essential features.
Define the following concepts in your own words: A. Decentralization B. Scalability C. Blockchain Security
Decentralization
Decentralization is key when it comes to blockchain network. The concept has granted all users the opportunity to have an absolute control of managing his or her administration without decisions passing through intermediaries or central authority.
This system is what significantly made more unique as compare with centralization, because users of the decentralized blockchain has the ability to make any decision at any time. It also grants users to be able to perform their transactions efficiently and effectively without any third party interference or delays. The decentralized blockchain has made it easier for users to have full control over their crypto assets and this ledger is transparent to everyone to but cannot be manipulated.
Scalability
The concept of scalability enables to update or upgrade the blockchain network to be able to accommodate the rapid growth of the system across the globe. It is observe that, the adoption of the blockchain network around the world keep on growing, and this however increases the workload for the system to cooperate.
So with the concept of the scalability, the blockchain system will be able to adjust to meet the demand efficiently and effectively without any inconveniences of the system. This implies that the system will be able to adjust the cost of its operation when there is an increase or decrease in the on the blockchain to meet the demand of the users efficiently.
The main idea of the scalability has to do with the effective functioning of the systems thus the speed involves to perform transaction validation. It is observed that a scalable system can validate a higher a number of transactions per second using the best consensus mechanism for the system. As it is, some transactions on the decentralized blockchain keeps too long to validate and verify transactions on the blockchain due to their nodes differences in the validation process.
Security
For every successful blockchain network security is a key component. Day in day out, we encounters of issues of investors logging complains of how their systems has been thrashed by hackers in the crypto market. All this kind of fraudulent activities are as a result of lack of enforced security on some of the blockchain networks. Investors invest their assets on this blockchains networks and for that the security should be given an absolute attention to that their investment is secured.
To obtain a well secured security, the choice of the consensus mechanism is key because it also enable for good coding action. The consensus mechanism on blockchain networks shows how the blocks are been validated on the network protocol. Codes are keys that is supposed to be well kept to prevent hackers to easily find access to and hijack developer’s blockchains and cause code directing in the system.
Based on your knowledge, explain at least two viable solutions to the challenges posed by the Blockchain Trilemma
The challenge of the blockchain trilemma will come pass if the following viable solution are taking into consideration;
Improving the standards of the consensus mechanism. This has to do with improving the standards from the concept of Proof of Work (PoW) to Proof of Stake (PoS). The practice of the PoS is the process whereby validators on the blockchain network are chosen based on how high they stake on the network. This implies that the higher you stake the higher your contribution to the network protocol and higher the chance of being validated.
In this concept, validation is irrespective of mining but staking power and this will help solve the challenge with respect to scalability and also improve the level of security and decentralized blockchain. Ethereum network started with a proof of work but currently using the PoS approach and they are currently upgrading to Ethereum 2.0 and this exhibits the PoS consensus mechanism. All this will gradually direct scalable transactions to the network alongside maintaining the security and decentralization.
In order to help solve the challenge of blockchain trilemma another way to overcome it is through Sharding. This is a concept which involves splitting or dividing the network into shards in order to perform transactions separately without any contradictions on each other thus in a relinquish manner. This will enable the concept of scalability to increase while there will be no challenge with respect to security and decentralization.
Developing Sidechains. The idea of building sidechains alongside with main chains is another way the challenge with regards to blockchain trilemma can be solved. With regards to the sidechains, it will remain open or publicize for the general public to use in order to validate their transactions.
This should be model in a way that when there is an intruding or breach in the security function in the sidechains, it should not directly affects the main chain and this main chain will however be emphasized on the security and decentralization.
CONCLUSION
Blockchain trilemma from the lecture is an interesting topic which gives a clue to understand the challenge of the blockchains. Blockchains has significantly provide transform the centrality of banking operation to a decentralized blockchain but along the line also faces some challenges which we understood well in the lecture.
We understand the concept of blockchain trilemma and also the relevant of the three essential features thus Decentralization, Scalability and security. We could also identify whether blockchain trilemma concept this is really a trilemma or not. And finally we identified some viable solutions which posed the challenge of the blockchain trilemma concept.
I really learnt a lot from the lecture and I will to appreciate professor @nane15 for the marvellous presentation of the course and I am looking forward to participate in the next lectures.