Blockchain Trilemma - Crypto Academy / S5W2 - Homework post for nane15
Good day steemians,
It’s a pleasure being part of the season 5 episode of the steemit crypto academy community and I’m very grateful. Proceeding to present my homework post, I would like to acknowledge professor @nane15 and other professors for thier hard work and I sincerely appreciates the steemit crypto Academy community for the support.
Today’s topic is Blockchain Trilemma. Here is my homework presentation based on the questions given.
1.) Explain in your own words what the Blockchain Trilemma is.
When we try to comprehend what we mean by blockchain trilemma, it started way back at the blockchain genesis block where blockchain was first introduced. Gradually blockchain tech introduced commenced substantiating its importance. However, for every advantage, there is a disadvantage. The fundamental system of the blockchain network, however, brings about considerable challenges. Therefore introducing a theorem that clarifies blockchain as an iteration thus the blockchain can only two out of three possibilities. Trilemma has a connection with a dilemma where the dilemma involves dealing with two possibilities where uncertainty is prevailing.
In contrast, a trilemma exceeds the complexity of a dilemma to involve three possibilities with an inconvenient possibility involved. After clarifying what a trilemma is, we now get a glimpse of the combination blockchain trilemma; its three available options to a blockchain technology where one among the three seems impossible. The choices blockchain must seek are security, decentralization, and scalability in its ecosystem.
Blockchain networks use decentralized consensus mechanisms such as PoW for Bitcoin, PoS for Cardano, PoB for Steem, etc. For instance, Bitcoin is the most popular blockchain network, decentralized and secure, but can only execute around seven exchanges each second making it not very scalable. Unlike the blockchain Cardano which satisfies all three possibilities. Other blockchains like the Steller proves security and scalability but it’s centralized. The irony of blockchain network.
Blockchains that are scalable and decentralized, however uncertain, are not very secure to hackers.
A worldwide local area of organizations, new businesses, and technologists are hotly creating Layer-1 and Layer-2 answers to settle this blockchain trilemma.
Layer 1 alludes to blockchain networks worked for speed, security, and development.
Layer 2 indicates tech improvements and items to improve the scalability of the blockchain. Accomplishing right between the two layers might aid blockchain tech and the growth of decentralized networks.
2.) Is the Blockchain Trilemma Really a Trilemma?
In my opinion, I believe the blockchain trilemma isn’t real as said because it is not generally attainable for Blockchain technology to perform all three primary functions, which I made mention earlier, thus Decentralization Security and Scalability. I believe performing all three qualities of the blockchain simultaneously is very difficult, and so trilemma prevails. Instead, blockchain technology is limited to performing two qualities per time, either pair available.
However, layer two solutions are being developed to address the trilemma issues of blockchain technology for a beet chain function.
3.) Define the following concepts in your own words
Decentralization
Decentralization is a process that gives all its users worldwide the freedom and power to make decisions on their own without consulting anyone.
All the users have been empowered to control all the activities concerning their work anytime they want without any rules or laws from others.
This has been a great help to stop a state whereby only one person or group of people to make rules for others to follow whether the rule is to their liking or not; Again, in this type of system, you do not have access to others account.
Unlike centralization, it Is the handling of all the activities that go on in an organization under a central body. In this place all the powers have been put into a single body, So all the users have to abide by every decision that has been made in the organization.
Scalability
Scalability refers to the ability of a consensus mechanism to complete various transactions in a short time. Blockchains that perform quite acceptable in scaling capacity due to their consensus mechanism are said to lack scalability. For instance, comparing PoW and PoS will tell the proof of stake(PoS) is more scalable since it can carry out many transactions simultaneously and is also very fast in contrast with that of the PoW. Blockchain trilemma explains that bigger scalability is feasible. However, security or decentralization will be lacking as an effect.
Blockchain Security
Blockchain security is the ability of a blockchain network to keep its operations safe from hacks or harm. Even though blockchain networks secure their activities from hacks, however, due to the consensus mechanism it operates on, some blockchain networks security becomes vulnerable. Due to blockchain trilemma security of the high throughput blockchain networks like the NANO chain is vulnerable to Bitcoin’s or Cardano’s because it functions on a blockchain with novel consensus mechanisms where security is weak. Unlike Bitcoin and Cardano, Bitcoin works on a PoW consensus mechanism, and Cardano also operates on a PoS consensus mechanism where security is very high for both.
4.) Based on your knowledge, explain at least two viable solutions to the challenges posed in the Blockchain Trilemma.
With respect to blockchain trilimma, there are several means of solving issues concerned.
1.
Proof of Work is the agreement right now being used on well known blockchain networks like Bitcoin. In spite of the fact that PoW is secure, it's additionally lethargic. For example, Bitcoin just accomplishes seven TPS. That is the reason numerous blockchain networks favor the Proof-of-Stake (PoS) agreement component. Rather than expecting diggers to settle cryptographic calculations utilizing significant figuring power, the PoS agreement convention decides validator status dependent on a stake in the organization. This is relied upon to significantly and essentially expand the limit of the Ethereum organization, while expanding decentralization and guaranteeing security.
2
The blockchain trilemma presents huge difficulties to embracing blockchain tech, arrangements are arising to track down a powerful and synchronous harmony between network security, decentralization, and adaptability. While the CAP hypothesis has remained constant for right around forty years, the execution of Layer-1 and Layer-2 arrangements close by the development of Proof of Stake in blockchain is almost shifting the worldview towards decentralized organizations that are immediately circulated, secure, and versatile.
conclusions
I will like to acknowledge professor @nane15 for this was a very key topic which was very well explained. Thanks for the humble service for I have understood the lecture very well.
Thank you. @ryzsfa