Exploring the blockchain trilemma and real-world case studies
By the end of this session, you will be able to:
The blockchain trilemma, coined by Ethereum founder Vitalik Buterin, states that blockchain systems can only optimize for two of three key properties: Decentralization, Security, and Scalability.
No single point of control, distributed governance
Resistance to attacks, immutability, reliability
High throughput, low latency, efficiency
The Challenge: Improving one aspect often requires compromising another
Result: Limited Scalability
Example: Bitcoin - Very secure and decentralized but only processes ~7 transactions per second
Result: Reduced Decentralization
Example: Traditional databases - Fast and secure but centrally controlled
Result: Compromised Security
Example: Some DPoS systems - Fast and distributed but with fewer validators
Goal: All Three Properties
Challenge: Current research focuses on achieving this through Layer 2 solutions, sharding, and novel consensus mechanisms
Trilemma Position: Prioritizes Security + Decentralization over Scalability
Trilemma Position: Balancing all three with Layer 2 solutions and sharding
Trilemma Position: Prioritizes Security + Scalability (private network)
Trilemma Position: Government-controlled but highly secure and scalable
Blockchain technology is likely to evolve from experimental to mainstream, with:
Throughout Module 1, we've built a comprehensive foundation in blockchain technology:
With this foundation, you're now prepared to dive deeper into Distributed Ledger Technology, where we'll explore:
Congratulations on completing Module 1! You now have a solid foundation in blockchain technology. In Module 2, we'll explore Distributed Ledger Technology in greater depth, starting with the origin and evolution of ledger systems.