Blockchain Trilemma - Crypto Academy / S5W2 - Homework post for nane15.

I welcome you all to a new week in the Steemit crypto academy after a very nourishing and creative lecture on Blockchain trilemma.

I must commend the host professor on this, since the learning process becomes more expedient with his good efforts.
Below is my assignment :

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1. Explain in your own words what the Blockchain Trilemma is.

The Concept of the word "Trilemma" just seems to be an advanced pattern of Dilemma which means having to choose between double options. But a trilemma entails having to choose between three options of which only two are feasible. Therefore in my opinion, I'll speak of a Blockchain Trilemma simply as a way of choosing from three remedies that affect present blockchain ecosystems in a place where it is possible to achieve only two or less from the three. Breaking it down further, we could say that Decentralization, Scalability and Security are three blockchain features that developers work heavily to attain, but most attain just two out of them.

Bringing up an example, we can talk of Bitcoin's decentralized and Secure blockchain which can process just about 7 transactions per second. Here we see that Scalability becomes the great issue. Let's take another example of Hyperledger's fabric which is secure and highly scalable and efficient in transactions but in same case is not decentralized.

This helps show that the blockchain trilemma is indeed a valid problem in blockchain technology. However, the apex of blockchain performance, is being able to manage transactions effectively, being very secure and decentralized too.

The solution to this trilemma is simply the development of Layer 1 and Layer 2 and each of these layers represent blockchains built for different purposes eg the layer one refers to blockchains that have their basis on Development, Speed and Security while the layer two refers to blockchain developments used to have an increased scalability.

While some blockchains aim to solve the blockchain trilemma, most blockchains (third generation) are bent to achieving the three major features since both of the two working mechanisms (Pow and PoS) come short of the basic features eg Solana which claim to have achieved the trio but still have arguments from people of decentralization

2.)Is the Blockchain trilemma really a trilemma?

As to my knowledge and understanding, the Blockchain trilemma remains a trilemma for now since no blockchain is satiable now as to the three major blockchain goals ie Decentralization, Security and Scalability.

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For example, the Solana blockchain like I mentioned in the sub topic above claims to feature Decentralization, Scalability and Security effectively but has serious contradictions from users of the fact that it isn't completely decentralized.

Taking it easier now, runninğ a node on Solana is exorbitantly high and expensive (running in thousands of dollars) compared to other blockchains which goes for less which still points at a centralized blockchain.

There are several solutions and developments that would help out with this trilemma with time, but for now, I think the Bitcoun trilemma is really a trilemma.

3. Define the following concepts in your own words:

The Blockchain trilemma has several concepts and they include :

Decentralization :
Decentralization, we must say, is the wheel around which blockchain activities revolve and is the concept that eliminates middlemen and intermediaries in the chain of blockchain technology. In this way, the operation of a system or institution and doling out of interest /gains is left to shared governance instead of a central authority like traditional banks. This decentralization, gives users total control over their individual nodes and through a process called crowd sourcing, no one in a blockchain can control /monitor actions and financial activities going on in a blockchain.

The trilemma affects this feature since, the more activities of miners on the network or we can say the more decentralization gets to its peak,scalability is reduced

Scalability :
When we talk about Scalability, we simply refer to the impact of a Blockchain in allowing high transaction rates and its potential development. High scalability of a Blockchain helps it in cases where the the blockchain begins to serve several uses and the blockchain use increases.

If the blockchain is affected by the high use, then it's poorly scalable and if it maintains quality, its highly scalable. According to the blockchain trilemma, Scalability is the very achievable feature but security and decentralization would always feel a bad impact from it.

Network settlement, transaction speed and volume are all functions of scalability and it is the most lacking feature in present decentralized networks

Blockchain security :

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For better performance of blockchain networks, there's a better plan to decrease the spread of blockchain nodes in size, numbers and many.
However, we must know that a move towards intense centralization decreases security on PoW networks. Every blockchain seeks to secure its network to avoid malicious attacks and data corruption. For example, some blockchain networks would demand a malicious user to gain over 51% of consensus power before financial and other aspects of the blockchain can be manipulated or even currencies double spent.

We must also know that Security would always affect decentralization or scalability ie some networks have to get centralized to achieve higher security or scalability

4. Based on your knowledge, explain at least two viable solutions to the challenges posed in the Blockchain Trilemma.

Viable solutions to challenges posed in Blockchain dilemma :
The lesson explains that there have been several written /theoretical expected solutions to Blockchain dilemma and just a few is practical and I would want to share

Firstly layer solutions :
The likes of Bitcoun and Ethereum are the 1st layer in decentralized systems and there are several methods in process for enhancing of the networks of these blockchains when it comes to scalability including :

• Enhancement of their consensus protocol :
  The PoW demands users to solve complex algorithms using huge computing power while the PoS determines their validors by stakes in the network and this potentially increases the volume of the blockchain network even while the system remains decentralized and Secure.
  This PoS is preferred to the PoW which is the reason why blockchains like Ethereum have already switched since the PoW is secure but relatively slow

• Another important and great solution to 1st layer scalability is sharding. It is derived from databases that are distributed and has been tested on blockchains. The process of sharding involves transactions being split into smaller bits known as shards and here, informations get analysed and processed differently and huge volume of transactions are worked on.
  Each node doesn't hold a block copy from genesis here, instead, the data is split and managed by seperate nodes.
  They help protect the mainchain and communicate with each other to divide balances, digital receipts and addresses using a protocol known as cross-shard protocols.
  Blockchains checking out the use of this solution include :Tezos and even the almighty Ethereum

Second Level Solution
The second level solution to the Blockchain dilemma is seen as Layer 2 solutions

Firstly we must known that layer two are networks that have their basis on an already structured blockchain and just aims to increase its effectiveness and make it more scalable. For example on the Bitcoin's blockchain we see the lightning network to be an underlying solutions for faster transactions

• Bulding of several blockchains on the mainchain in hierarchical form where work is given to the simple chain after which it goes back to the main chain after its perfection could be seen as a process called "nested blockchains" and is a great solution to Blockchain trilemma
  This decentralized network uses the actual chain to set simpler ones for a bigger space of transactions on the network and are carried out on a group of the main chains. To explain this better, the Ethereum blockchain which is a layer one network, serves as a base for OMG plasma project which is a layer two project

• Side chains :These chains are close blockchain transactions chains that are utilized for large volume transactions. These side chains use a different consensus mechanism from the one the main chain uses and in this process uses it for faster transactions and scalability. The transactions on the sidechains are publicised on the ledger unlike state channels and even security faults don't affect the sidechains.

Conclusion :
The lesson has created a very strong point in Blockchain activities which is now indelible in my memory about blockchain trilemmas
Blockchains are not islands of perfection when it comes to the points of Scalability, decentralization and Security but we hope with time, there would be efficacious solutions as to these three features being complete and unaffected by each other in different blockchains

Thanks one more time professor for this great lesson

Best regards
@nane15