You Are Highly Welcome To This Homework Task That Was Given By Professor @nane15 on the topic : "Blockchain Trilemma". May Your Day Fill With Joy As You Read Through
Explain in your own words what the Blockchain Trilemma is.
As blockchain technology is fast growing with a lot of utility that is being put in place in the industry such as finance,art and many others DApps that is created using blockchain there are still some underlying issue that is involves when trying to create/develop DApp in the industry as compared to that of centralized network. With the challenges that are face in a Decentralized network is what triggered Vitalik Buterin to proposed a set of three main issues of decentralization, security and scalability that are face in the blockchain industry.
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In a nutshell, Blockchain Trilemma is a proposed, option of a set of three main difficulties that a developers do face when creating blockchains, making them to ultimately offer one feature for as a trade-off so that the other two can be accommodated. It is a believe that blockchain technology can only accommodate two of three of it advantage at any given point in time concerning the decentralization, security and scalable that I have earlier mentioned. This simply means that developers are forced of face with challenges to sacrifice one feature for the sake of the remaining two feature.
Although some developers believe that blockchain technology can have all the three aspect whereas some developers in the industry, feel that it is impossible for the three aspect to be achieved.
Is the Blockchain Trilemma Really a Trilemma?
Well according to what I have understood about a Blockchain Trilemma. I can easily say that the blockchain Trilemma is not really a Trilemma, even if it's a Trilemma it will not last for long with the use of solution like Proof of Stake that is very advanced and other such as sidechain and sharing that would be soon integrited into our stores soonest, developers will see the new look of blockchain network.
Literally, such solutions are proposed to come into existence with the launch of Ethereum 2.0. The network that is well upgraded and which all the aforementioned features are Incorporated for the purpose of creating a PoS blockchain that is more decentralised, secure and scalable. As soon as all the updates that needed to be upgraded in the Ethereum 2.0, the network that we have known and be using for decade will no longer be in used. This means that Ethereum Proof of Work will become the sidechains of either Ethereum 2.0's or 64 that will be makes the project move forward. With this few point I have to draw the line by saying once again that blockchain Trilemma is not really a Trilemma.
Define the following concepts in your own words:
- A. Decentralization
- B. scalability
- C. Blockchain Security
A. Decentralization
Decentralization is the number one feature that was integrited in blockchain technology. Decentralization simply means a system that is control without the use of central authority managing its affairs. Decentralization eliminates the use of third party within and across a company. An example of a decentralized blockchain network is decentralised finance (DeFi) platforms that is totally run and without the used of third party.
Literally, when defining decentralization in another way round we can see that decentralization can be define as the type of application that has no controlled from it unit of creation instead it's an open source application that allow users to view and see all the transactions of another users. A good example of such is Steemit.
B. scalability
One of the problem of s blockchain is scalability. Scalability in a blockchain network should be a feature that is determine to support multiple number of transactions without adding an additional fees to the transaction that are perform by users.
In a nutshell, scalability is define as a measure that a system take to increase or decrease the ability of its performance. This means that scalability has to do with how a database, hardware is being perform when their is more users into the system. Blockchain Trilemma has make us to understand, that it is possible to achieve greater scalability, but the other two features which are the security and decentralisation will face some challenges. For any blockchain network to work perfectly, their should be a scalability, because is a means by which decentralized network can overcome the centralized network.
C. Blockchain Security
When there is no security in any applications or system such a system or applications would become useless as it can easily be compromise by hackers. Without Blockchain security, blockchain would be worthless to it's users and to the society as users would have the change to manipulate figures and change some data in its ledger.
In a very simple understanding, Blockchain Security is define as a network that I'd design to checkmate and prevent malicious individual or entities from taking over users data or the ledger of the blockchain. Security is a means of preventing our data from unathorized access.
Based on your knowledge, explain at least two viable solutions to the challenges posed in the Blockchain Trilemma.
The possible way that the viable solution to the challenges posed in the blockchain Trilemma can be solve and achieve the it three features of decentralization, security and scalability is the use of Layer 1 solution and Layer 2 solution. Let's get started with their explanations below.
Layer 1 Solution
When talking about a decentralized ecosystem,the first thing that come in is the Layer 1 solution.It is the solution that stand as the protocol to any blockchain just as Bitcoin,Ethereum and the rest.Right now there are several number or method that are in practice and also in development that want to improve blockchain scalability.
Although, currently Proof of Work (PoW) is one of the consensus protocol that is in use on the Bitcoin blockchain networks even with it slowness it's still secure to solve challenges. For example only seven TPS that is achieve in Bitcoin.This is the main reason to why some of the blockchain network like Ethereum upgrade to Ethereum 2.0 as I have earlier say which is now of advantage to the use of proof of Stake consensus.This is of more important because miners wouldn't be solving cryptograhic algorithm using computer power that is too substantial. With this Ethereum network will be increase and also the challenges posed in blockchain Trilemma will be solved when increasing decentralization and security.
Layer 2 Solution
Layer 2 Solution is a technology that operate at a top of blockchain protocol that is underline to make it's scalability more efficient. A good example of this is Lightning network is a layer 2 and Bitcoin is a layer 1 protocol which are both solution that are created to increase transaction speeds. The Lightning network which is the layer 2 protocol have grown largely and proving to be more efficient in solving the challenges that is posed in blockchain Trilemma and as well that of scalability challenge for Proof of Work.
Conclusion.
Without much saying blockchain trilemma present challenges that are very important when adopting blockchain technology, since it brings about solutions that can be of effective benefits in solving the challenges between scalability and that of decentralization. I sincerely, appreciate the effort of professor @nane15 on the way he has explained the blockchain trilemma into a very simple understanding which is the information that I use in presenting this homework task.