Blockchain Trilemma - Crypto Academy / S5W2 - Homework post for nane15
Hello wonderful people, how are you today? I hope you're having a fantastic week. I'm ecstatic to be a part of this unforgettable lecture. In this article, I'll share my experience with Blockchain Trilemma
Question 1.
Explain in your own words what the Blockchain Trilemma is?
The blockchain has proven to be a highly accurate and cost-effective or outlay way of transmitting knowledge worldwide. The Blockchain Trilemma is a method in which consumers benefit from two of the three benefits of Blockchain. It employs two decentralization, scalability, and security features. Three variables make up the blockchain trilemma: scalability, decentralization, and security. The blockchain trilemma alludes to blockchains' failure to achieve a balanced among each. When all three characteristics are united, the blockchain trilemma occurs. The blockchain trilemma alludes to certain developers' assumption that decentralized network systems can achieve scaling, diversity, and security often at the same time.
Vitalik Buterin developed the term Blockchain Trilemma to describe a fundamental issue that Blockchain networks confront in order to be decentralized, scalable, and safe. The Trilemma enables you to pick between three desirable possibilities, requiring you to select two of the three options offered to you. However, according to Vitalik, no blockchain could have all trio of the conditions associated without compromising one.
Question 2.
Is the Blockchain Trilemma Really a Trilemma?
The term "TRILEMMA" refers to a circumstance in which one can't get everything out of three possibilities. The Blockchain Trilemma is truly a Trilemma since, over time, the benefits and services offered by a blockchain have become much less as a result of the high volume of operations. The blockchain trilemma was established as a way to represent as well as effectively understand the challenges that blockchain technology faces as it develops and becomes more widely adopted.
A Blockchain Trilemma is a Trilemma with in view that we've demonstrated how tough it would be for a blockchain to simultaneously implement all three options. The Trilemma is a metaphor that represents the multiple obstacles that blockchain technology faces. Some developers feel that blockchain networks could have all three essential properties simultaneously time, while others argue that this is not feasible. The Blockchain Trilemma may have been used to inform people about one of the issues that blockchain has previously experienced.
Question 3.
Define the following concepts in your own words: A. Decentralization B. Scalability C. Blockchain Security
Decentralization.
The movement of control and choice from a centralized entity (person, organization, or collection therefrom) to a decentralized system is referred to as decentralization. Decentralized systems aim to limit the degree of trust that members should believe in each other to prevent them from exerting authority or control over one another in ways that harm the program's performance.
The concept of decentralization is not new. Three basic network designs are often examined when developing a technology solution: centralized, distributed, and decentralized. While decentralized networks are frequently used in blockchain technology, a blockchain application cannot simply be classified as decentralized or not.
Scalability.
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A key feature of blockchains is scalability. When it relates to confirming transactions, a channel's adaptability is the effectiveness of the network's quickness. A network with great scalability can handle more transactions per second. A network's scalability is usually determined by the negotiation technique being used and a number of nodes necessary to verify blocks.
Bitcoin, for instance, has a transaction rate of seven transactions per second. All operations are scheduled for replenishment when there are more than seven transfers per second. This line has been created as a result of Bitcoin's free reward. That is, the individual who spent the most price receives a higher position in the line.
Security
A blockchain network's security relates to how vulnerable it is to assaults. In the crypto realm, there were numerous hacking disasters, all of which have been caused by a lack of safety in several of the systems. In the blockchain, security is essential, and it should be prioritized in all crypto assets.
The most critical thing to incorporate is a security mechanism. Particularly when it comes to emerging innovations that are prospective and want to be acknowledged, their blockchain networks must be secure. Considering the high number of breaches and weaknesses to its origin, it's clear that many crypto projects are presently focusing on decentralization and scalability, which doesn't significantly improve the blockchain network's protection.
Question 4
Based on your knowledge, explain at least two viable solutions to the challenges posed in the Blockchain Trilemma.
- Layer one and layer two are two distinct layers that can be used to tackle the issues provided by the blockchain Trilemma.
Layer 1.
The primary function of layer one is to deliver a resolution to the main blockchain in order to aid in the improvement and resolution of the blockchain's difficulties. Let's have a glance at how it's accomplished using the following two scenarios or case studies:
- sharding
- consensus mechanisms.
sharding.
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Harding is a database segmentation strategy used among blockchain firms to increase scalability and the number of transactions processed per second. Sharding is the process of dividing a blockchain company's whole system into smaller "shards." When linked to other shards, every shard is made up of its own content, keeping it separate and autonomous.
Because sharding divides a blockchain into independent shards, it can assist reduce transmission delay or latency. Nevertheless, there are certain security issues to sharding, such as the possibility of shards being hacked.
Consensus mechanism.
A consensus method is a fault-tolerant method used during software and blockchain systems to obtain the required consensus amongst dispersed operations or multi-agent networks, such as cryptocurrencies, on an individual data value or a specific network configuration. It's useful for keeping track of items, among much other stuff.
Proof-of-Work (PoW) is the consensus process used on the Bitcoin blockchain, which demands the use of computer ability to solve a challenging but random problem in able to preserve all network nodes' honesty.
Layer Two
The layer two solutions entail building child systems on top of the primary one to assist in the resolution of the parent blockchain's issues. The following are examples of layer two solutions:
Building sidechains
A sidechain is a separate blockchain with its own verifiers and block-adding agreement procedure. It connects to the main chain by a bridge.
Payment Channels
On Layer 2, a link between two entities is established, and crypto is transferred on the main blockchain. Payment pathways are common, however, confirmation of route closure might take up to 24 hours, and the network only operates among parties involved.
Conclusion
For all the sector's diligent workers, the blockchain trilemma is a critical topic. Bitcoin and Ethereum, for example, already have accomplished a great deal for the globe. However, in sequence to get to a point where blockchain can alter everybody's life, not even just our small community's, the trilemma must be overcome.
While we have initiatives that use PoS and sharding, neither of them has the opportunity to demonstrate to the rest of the globe that they can handle a huge customer base.