Blockchain trilemma / Crypto Academy / S5W2 - Homework post for nane15
QUESTION
- Explain in your own words what the Blockchain Trilemma is.
- Is the Blockchain Trilemma Really a Trilemma?
- Define the following concepts in your own words:
- A. Decentralization
- B. Scalability
- C. Blockchain Security
- Based on your knowledge, explain at least two viable solutions to the challenges posed in the Blockchain Trilemma.
Conclusion.
ANSWER TO QUESTION 1
Explain in your own words what the Blockchain Trilemma is.
After reading this amazing lesson taught by @nane15, I can proudly say the concept of block chain trilemma was well understood.
Now, it's known to us that trilemma refers to three issues with the same level of magnitude. In blockchain, trilemma is a set of three issues that constantly contradict each other. This three issues are decentralization, security and stability.
Vitalik Buterin is well known for coining the name blockchain trilemma.
The term denotes three issues which have been mentioned above that often comes in the way of Blockchain developers making them to chose two and leave one.
In the blockchain world, a decentralized network can only accommodate two of the three presented features of almost thesame importance thereby leaving the network porous in the left out feature aspect.
New blockchain developers are putting in much effort to create a blockchain network that can accommodate this three amazing features and also the availability of the first layer and second layer solution is also doing a great job in fusing this three concepts together.
In tackling this problem, some developers have already given up that this three concepts can be fused together but some new developers are still working earnestly to fuse them together and this attempt has birthed some new Networks example which is the algorand and many more.
ANSWER TO QUESTION 2
Is the Blockchain Trilemma Really a Trilemma?
This is a very technical questions and I'll be answering it in two dimension.
We all know that a Trilemma is a three equal weighted problem that presents almost thesame level of importance and value which in turn gives an individual a very tough challenge to chose from them.
In blockchain, this Trilemma include decentralization, stability and Security. Now, digging deep into this concepts, we can notice that each of this concepts is very important and can affect a blockchain network immensely so not been able to fuse this concepts together makes it a Trilemma, because the developer is caught in the web of making a very difficult choice.
Secondly, new developers have seen a way of coining them together beside some solutions are now available so at this point, it's not regarded as a Trilemma anymore.
ANSWER TO QUESTION 3
Define the following concepts in your own words:
DECENTRALIZATION
Decentralization in blockchain simply means transfer of power from a centralized entity which can be an individual, an association etc to a distributed network. One amazing feature of decentralization is that it eradicates the attribute of trust in the blockchain world. In short, transactions can be done in the blockchain world with individuals we don't know without fear, and no one in the blockchain can exert power over the other.
We have centralized and decentralized applications, centralized apps are controlled by a central body, which is to say that it's governed and controlled by a center man. Example is the bank. A decentralized application on the other hand doesn't need a central body to control it.
SCALABILITY
Scalability in crypto is equivalent to the word adaptation. Many users enter into this blockchain network every day. The ability of this network to accommodate this users and their transaction can be seen as scalability.
During scaling, a trader opens trade in different position with different price level.
Scalability is one of the trilemma in blockchain. In other to obtain scalability, a developer will either reduce decentralization or security.
BLOCKCHAIN SECURITY
Security in common sense can be seen as the act of safeguarding something.
In anything we involve ourselves, security is one major component that's always taken note of.
This concept is same in the blockchain world. If the blockchain network is not secured, hackers can easily penetrate and obtain relevant information that belongs to a user.
Now, security in blockchain is immutable which is to say that it can't be corrupted by external attack.
The blockchain uses person to person method in transaction without a central party to control the transaction, which brings in the concept of proof-of-work.
ANSWER TO QUESTION 4
Based on your knowledge, explain at least two viable solutions to the challenges posed in the Blockchain Trilemma.
The concept of blockchain Trilemma isn't a new one. When we hear Trilemma, we're talking three concepts of equal magnitude which makes it very hard for a developer to choose.
In other to solve this problem, there are some solutions which was explained by professor @nane15. They're the first layer solution and the second layer solution.
1. FIRST LAYER SOLUTION
One of the solutions put in place to solving the blockchain Trilemma is the first layer solution. This solution uses the base technique in solving Trilemma problem. They try considering and solving the problem from the first consensus protocol which is the proof of work.
In attempt to solving this problem, blockchain developers have developed some networks like Polkadot, Solana and Algorand.
Like the Algorand, they try to solve this problem with another network similar to DPoS. in doing this, some entities play the role of nodes there by making it highly scalable.
THE SECOND LAYER SOLUTION
Another solution which claims to solve trinity problem is the second layer solution.
Now, this solution doesn't operate from the base like the first layer does, it attacks the problem in an adjacent way.
One outstanding network in the second layer solution is what is called the lightning network.
The major duty performed by this network is the establishment of payment channel to the individuals that uses the network and this network in turn allows them to trade their asset without charges which is another way of solving scalability problem.
CONCLUSION
This was indeed a wonderful course taught by professor @nane15. He did justice to lesson by teaching everything to my perfect understanding.
This lesson focuses on one major problem affecting blockchain which is called blockchain trilemma and the possible solutions put in place to solving this problem.
Am excited that I've participated in this wonderful class, all thanks to professor @nane15.