<div class= "text-justify"> Saludos cordiales profesor y mis compañeros.
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Thank you once more for having this honor to be part of this season's task.
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### Explain in your own words what the Blockchain Trilemma is. ii) Is the Blockchain Trilemma Really a Trilemma? iii) 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.
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***Blockchain Trilemma***
Vision and ambitious are what systems found in the space of blockchain are known for in the their development but what their priorities differ. Decentralization, scalability, and security are the three main themes that initiatives revolve on.
The Blockchain Trilemma is a term coined by Vitalik Buterin to describe the difficulties that developers have in constructing a blockchain that is scalable, decentralized, and safe without sacrificing any aspect.
While blockchain technology is proven its worth in fields ranging from finance to art, decentralized networks face unique obstacles when compared to centralized networks. To articulate possibly the most major of these issues, computer scientists devised the CAP theorem in the 1980s.
The CAP theorem states that decentralized data stores, of which blockchain is an example, can only satisfy two of three guarantees at the same time: consistency, availability, and partition tolerance (CAP). This theorem has become referred to as the blockchain trilemma within the context of current distributed networks.
This is the widely held notion that public blockchains must make infrastructural compromises in terms of security, decentralization, or scalability.
Unlike central network infrastructures like VISA or the internet, public blockchain networks rely on decentralized consensus methods.
This entails overseeing a widely dispersed network of nodes in order to achieve data consensus across a resilient infrastructure that maintains openness and open access for all. It's a test of your endurance! Bitcoin, for example, is decentralized and secure, but it can only handle about seven transactions per second (TPS).
Enterprise blockchains, such as Hyperledger Fabric, are safe and capable of large transactional throughput, but they are centralized and confined to a small number of consensus-achieving nodes. Insecure blockchains are subject to hacks, making them unsustainable in the long run.
The blockchain trilemma is being solved by a global community of corporations, start-ups, and technologists working hard on Layer-1 and Layer-2 solutions.
Blockchain networks designed for speed, security, and expansion are referred to as Layer 1. Layer 2 refers to scalability enhancements and products for existing blockchain networks. Where these two levels perfectly balance could be a game-changer for blockchain adoption and decentralized network growth..
In order to achieve all three qualities, blockchains are frequently required to make trade-offs:
i) Decentralized: constructing a blockchain system that is not controlled by a single entity.
ii) Scalability refers to a blockchain system's ability to manage an increasing number of transactions.
iii) Secure: the blockchain system's capacity to perform as planned and defend itself against assaults, errors, and other unforeseen concerns.
While some developers believe that the blockchain data format has intrinsic restrictions that prohibit it from expanding, many architects, including CertiK, believe that a blockchain project can meet all three goals: scalability, decentralization, and security.
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***Blockchain Trilemma, is it really a Trilemma***
First and foremost, the Trilemma is merely a model for conceptualizing the numerous issues that blockchain technology faces. There is no rule that says the three aspects can't be combined.
To date, however, teams have experimented with many ways in order to maximize decentralization, scalability, and security.
The CertiK Foundation feels that a pyramid is a better way to visualize the Trilemma. The basic layer is the foundation upon which all other layers are built: security.
Decentralization could be tainted without it, and scalability could be short-lived. The CertiK Foundation is taking a proactive approach by creating a certified blockchain, the CertiK Chain, from the ground up, enabling developers to code with confidence by delivering the world's most resilient and secure blockchain.
The foundation for both decentralization and scalability will be laid by security. Decentralization is a long process, and scalability is something that should be constantly improved.
The CertiK Foundation believes that security cannot be compromised; the CertiK Chain, which was created by professionals in totally trustworthy and secure software, puts security first.
The blockchain community has long awaited the full adoption of blockchain technology by established businesses, with scalability generally cited as the main roadblock. While a lack of scalability may be a contributing cause, a lack of trustworthy security would undoubtedly be a major factor.
Large corporations, in contrast to startups, are more risk cautious since they stand to lose a lot more. As a result, it's critical for businesses to have complete confidence in new technologies before implementing them into their systems.
The CertiK Chain will increase confidence by supplying machine-readable evidence that can be independently verified for complete code security transparency.
Regardless of how the Trilemma is shaped, it is widely acknowledged that decentralization, scalability, and security are impossible to achieve in any blockchain system. Blockchain technology is still in its infancy, and technology techniques are expected to develop over time. The CertiK Chain is unique in that it places security first; by constructing a solid basic layer, the possibilities are unlimited.
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***Definition of the Following Concepts***
1) Decentralization.
2) Scalability.
3) Blockchain Security.
**i) Decentralization:** Blockchain is erected on the idea of decentralization. The system is fully consolidated in traditional finance. Guests entrust banks with complete control of their means, from particular documents to the means themselves.
Bitcoin and other early cryptocurrencies handed a decentralized and transparent volition to centralized currency allocation and storehouse.
Decentralized systems are important because they allow for permissionless power, allowing anybody to use and develop on the platform. Consensus- grounded decision- timber is the norm.
They can't be changed after they've been confirmed by consensus. As a result, risk isn't concentrated in a single organization, and trust isn't based on the actions of another person.
Pure decentralization, on the other hand, comes with a speed penalty. If several confirmations are required before reaching consensus, the transaction will intrinsically take longer than if it can be confirmed by a single party. Bitcoin is well-known for being both decentralized and sluggish.
**ii) Scalability:** For broad acceptance, scalability is critical. It's a matter of determining how much a blockchain system can withstand and whether it can continue to function properly as demand grows.
The ability of a blockchain protocol to handle high transactional throughput and future expansion is known as scalability. This means that the performance of a scalable blockchain will not suffer as use cases grow and adoption of blockchain technology grows. Scalability is defined as a blockchain's capacity to perform well as adoption grows.
While several blockchain systems have achieved decentralization and security, today's leading decentralized networks face a big difficulty in scalability.
So, how do we address the blockchain trilemma while maintaining decentralization, security, and scalability? Layer-1 and Layer-2 solutions are the answer.
iii) **Blockchain Security:** There's an incentive to reduce the dispersion of blockchain nodes geographically, numerically, or both to boost network performance on a blockchain network.
However, on Proof-of-Work (PoW) networks, this shift toward higher centralization lowers security. A 51 percent assault is more likely to occur when agreement is reached on an open network with restricted nodal distribution, as hackers can easily collect hashing power.
Hackers can take control a network and manipulate transactions for monetary benefit by overwhelming it.
The fact that decentralized technology is open-source is the primary reason why blockchains are less safe than centralized databases. Because any hacker can read the code, he can spend countless hours determining what kind of vulnerability he can use.
Exploits, particularly in the Bitcoin network, are extremely rare. Because smart contracts are common in other blockchains, they are more vulnerable. Flash loans, a sort of collateral-less loan used in the DeFi industry, will be the quickest way to hack a project in 2021.
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***The Solutions that are Viable to the Challenges Posed in the Blockchain Trilemma***
Despite the fact that the blockchain trilemma poses major walls to relinquishment, results are arising to strike a balance between network security, decentralization, and scalability. While the CAP theorem has been valid for nearly four decades, the perpetration of Layer 1 and Layer 2 results, as well as the preface of Proof of Stake in blockchain, are on the verge of moving the paradigm towards decentralized networks that are distributed, safe, and scalable.
• **Layer 1:** Blockchain protocols such as Bitcoin, Litecoin, and Ethereum make up Layer 1 in the decentralized ecosystem. There are several approaches in research or use right now that aim to directly improve the scalability of blockchain networks.
***Improvements to the Proof of Work consensus system:*** The Proof of Work consensus mechanism is currently in use on prominent blockchain networks such as Bitcoin. PoW is both secure and slow.
Bitcoin, for example, has a TPS of only seven. That is why the Proof-of-Stake (PoS) consensus method is preferred by many blockchain networks, including Ethereum's upgrade to Ethereum 2.0.
The PoS consensus mechanism decides the validator status based on a stake in the network, rather than requiring miners to solve cryptographic algorithms with significant processing power. This is projected to reinforce the Ethereum network's capacity considerably and fundamentally, while also increasing decentralization and assuring security.
***Sharding:*** Despite its rather experimental character within the blockchain sector, sharding has become one of the most preferred Layer-1 scalability methods. Sharding divides large data sets into smaller "shards."
The network processes shards in parallel, allowing for sequent. Sharding divides large data sets into smaller "shards."
The network processes shards in parallel, allowing sequential processing of the many transactions. Furthermore, rather of having each network node maintain a copy of every block from the beginning to the end, this data might be partitioned and held by different nodes, each remaining consistent with itself.
Shards offer proofs to mainchain and communicate with each other utilizing cross-shard communication protocols to transmit addresses, balances, and general status.
• **Layer 2:** Layer 2 can be seen as a system that runs on top of a blockchain protocol to increase scalability and efficiency.
Bitcoin, for example, is a Layer-1 protocol, but the Lightning Network is a Layer-2 solution designed to speed up Bitcoin transactions.
Layer-2 protocols have gained lots of popularity in the recent years, and they're proving to be the most effective solution to solve scaling issues in PoW networks.
***Nested Blockchains*** This is said to be a decentralized network structure that does make use of main blockchain to specify parameters for larger network, while prosecutions take place on a web of secondary chains.
On this primary chain, multitudinous blockchain orders are established, each with a parent- child relationship. The parent chain delegated work to sprat chains, who completed it and returned it to the parent. Unless there is a need for disagreement resolution, the bolstering introductory blockchain does not partake in network services.
The OMG Tube design is an illustration of Caste-2 nested blockchain structure that is used on top of Caste-1 Ethereum to allow for hastily and further effective deals.
The job dissipation in this paradigm reduces the processing burden on the mainchain, adding scalability extensively.
***State Channels*** This allows two- way communication between a blockchain and off- chain transactional channels, a state channel improves overall sale capacity and speed.
The miner doesn't have to be involved incontinently down to validate a sale in a state channel. Amulti-signature or smart contract approach is used to guard a network-conterminous resource rather.
The ultimate" state"of" channel"and all its essential transitions are posted to the underpinning blockchain after sale or batch of deals on a state channel is completed.
State channels include the Ethereum's Raiden Network, the Liquid Network, Celer, Bitcoin Lightning, and therefore the Liquid Network. State channels make a decentralization concession to get advanced scalability in the trilemma dicker.
***Sidechains*** A sidechain is a transactional chain that's connected to the blockchain and is used for big bulk deals.
Sidechains employ a separate agreement medium from the main chain, which can be tuned for speed and scalability, and a mileage commemorative is constantly used to transport data between the two chains.
The mainchain's top purpose is to give general security and to resolve controversies. In variety of ways, sidechains differ from state channels. To start with, sidechain deals aren't private between actors, rather, they're published openly on the tally.
Likewise, security breaches on the sidechain have no bearing on the mainchain or other sidechains. Because structure is constructed from the ground up, establishing a sidechain takes a lot of work.
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<center>**Conclusion**</center>
For all of the assiduity's active inventors, the blockchain trilemma is an important content. Bitcoin and Ethereum, for illustration, have formerly fulfilled a great deal for humanity. Still, the trilemma must be resolved in order for blockchain to alter everyone's world, not just our little community's.
This task has helped me to understand what the blockchain trilemma is each about. Thank you for bringing this up.
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Cc:
@nane15</div>