Homework 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.
Introduction
Good Day Steemians , I will be responding to assignment given by professor @nane15 Thank you for this wonderful lecture on "Blockchain Trilemma ", their is need to understand what blockchain trilemma and the principle surrounding it.
Explain in your own words what the Blockchain Trilemma is.
Over the Decades, blockchain technology have shown a remarkable potential where it disrupt the traditional financial system including other sectors .Blockchain technology has been making wave in utility industries ranging from finance and so many more, But the underlying nature of decentralized system comes with alot of challenges when compared to centralized networks. In the late 90s, computer scientists developed the CAP theorem to articulate the major challenges of decentralized system. blockchain network is an iteration which can provide just two out of the three guarantees concurrently : consistency, availability, and partition tolerance .
In the recent network distribution, the CAP theorem has evolved into what is known as blockchain trilemma. This is a general belief that says that public blockchains must sacrifice or give up either security, decentralization, or scalability in their infrastructure.
Most of the recent blockchain network tend to solve these issues with the use of different methodology. in respect to Bitcoin network, they use of Proof of Work (PoW) which is very secure and decentralized to solve the issue of the blockchain trilemma but it's being faced with one core challenge which is scalability because miners have to complete some challenges before a block is being approved.
Blockchain trilemma is a challenge for most Proof of stake networks when we talk about decentralization because POS consensus gives power to only high stakers to serve as validators.
Examples of network very scalable, they tends multiple transactions in second, but they usually end up sacrificing one of the principal characteristics for scalability.
So many community of technologists are developing Layer-1 and Layer-2 solutions that is aimed at solving blockchain trilemma. Layer 1 is refers to as blockchain networks for speed, security and growth while Layer 2 is refers to as tech optimizations and products which is aimed at improving blockchain scalability.
On a closer look the issue of blockchain trilemma have not been solved.
Is the Blockchain Trilemma Really a Trilemma?
Blockchain Trilema is actually a trilema facing blockchain network because they find it difficult to over come security, decentralization, or scalability concurrently. but with the rate of network development, there is room for improvement network. And most of the network system are in overcoming trilema issue with respect of making using of the three major properties simultaneously.
Even when their is no complete solution to the trilema but I believe solution will drop soon which will allow the three properties to be use simultaneously.
Define the following concepts in your own words: A. Decentralization , B. Scalability, C. Blockchain Security
What Is Decentralization?
Decentralization is the direct opposite of the word centralization. Centralization was gotten from the word central, which means a point, Centralization is defined as the system that is being control and manage by a single authority, known as central authority.
A Simple example of centralized system is the Banking System, The central Bank control and oversees the affairs of other local banks. thus the central bank is the central authority.
From the above explanation on centralization, we can easily understand what Decentralization all about is because I said decentralization is the opposite of Centralization .
Decentralization can be define as the division of authoritative activity of a system, society or structure from a single individual to many persons . In Decentralization the control and management of the system does not depend on central authority. In this system, the control activities and decision making is dependent on the every unit connected to the system.Decentralization tends to eliminate the ide of a middle man a system.
For instance in Cryptocurrency world, Decentralization, the authority to manage or control the coin or token is being allocated to the users rather than central unit . Decentralization came into reality in crypto space with the use of blockchain network which operates on algorithm . Bitcoin network was the first Cryptocurrency be made and it spread the power to control the currency .
A Good example of decentralized system is steemit community where all the user on the platform has the right to grow in power even to the point of moderating what happens in the system.
CHARACTERISTICS OF A DECENTRALIZED SYSTEM
- It divides it's authority to all the member
- It's difficult to break into decentralized system.
- The rate of decision making is faster.
- Every member on the network is responsible for their decision.
What Is Blockchain Security?
The security system of a blockchain network is define to how easy most the network can be attack easily without stress . Crpto space have record the series of scandal as result of lack solid security in crypto space, The need for Security in blockchain network is very important and should be given maximum attention. We have series of fraud as a result of code misuse, which implies that code are meant to be confidential to avoid lost of fund . The blockchain system can be said to be highly secured For example, in the Bitcoin system, for hacker to be able to manipulate users information, he has to get approval from other nodes, which can to be get easily .
What Is Scalability?
Scalability in respect to a blockchain network can be defined as the ability of a network accommodate high rate of transaction thus as use case increases, adoption of blockchain increases and the performance of a scalable blockchain won’t be a problem.
Blockchains that works poorly as use case increases is said to be lacking scalability in its features, which means in blockchain trilemma high scalability is obtainable, but decentralization and security will have to face the consequences or suffer for it.
Based on your knowledge, explain at least two viable solutions to the challenges posed in the Blockchain Trilemma.
In the decentralized system, Layer 1 and Layer 2 tends to offer a solution just as prof have said in in his lecture. blockchain netowork like Bitcoin and Ethereum are currently working on how to improve the scalability of blockchain networks directly below is the some of the method used to offer solution to blockchain trilemma.
Layer 1 solution;
Sharding : is one of the ways used to also solve the issue of blockchain trilema. It involves dividing the blockchain into shards, so that transactions can be done separately but in a unique way. This tends to increase scalability without having effect on security and decentralization. These shards are processed simultaneously allow numerous transactions on the simultaneously.
Consensus Protocol Improvements: proof of work is being used in most blockchain network like Bitcoin and etherum because it is very secured. In as much as PoW is more secure but very slow. But their is improvement because most network like Ethereum’s upgrading their network which would favor Proof-of-Stake (PoS) consensus mechanism. Instead of making use of miners to solve most of the issue, the PoS consensus protocol will determine the validator status which is tend to increase decentralization and ensure maximum security.
Layer 2 solution;
The layer two solutions tends to create a networks on top of the main network in order to solve the issue faced by the main blockchain. The layer two solutions include:
Nesting the networks makes its distribution hierarchically in a parent-child manner, which tends to transfer the of work from the original blockchain to the child chains just to minimize the pressure on the original chain so as to achieve more optimum scalability, decentralization, and security.
construction sidechains adjacent to the original chains which will help solve to the issue of the blockchain trilemma. The transactions on sidechains will be made available to the public and it will be used to validate transactions. This will allow main chain to concentrate on security and decentralization.
Constructing an off-chain channels that can communicate with the original chain will also reduce the issue of blockchain trilemma thus will tend to reduce the work load of the main blockchain.
Conclusion
This is the first time am coming across blockchain trilemma and I now understood what trilemma is and with my research I strongly believe that it will surly become history one day. Thank you Professor @nane15 , for this wonderful lecture your contributions to crypto academy is awesome.