Download our zondacrypto
app and start investing now!
The blockchain trilemma is a concept formed by Ethereum creator – Vitalik Buterin, referring to three main features that are the foundation of blockchain operation.
These components are decentralization, scalability, and security. As a rule, projects strive to optimize all of them, but this is very hard to accomplish in practice. Why is 100% interoperability of these features such a challenge? Welcome to the article, in which we explain the technical side of this problem.
Let's start by explaining what the above-mentioned functions are responsible for.
Decentralization – means that data is stored and managed by a large number of nodes that organize the operation of the network. It provides resistance to censorship, prevents single points of failure, and loss of control, and increases transparency. In blockchain, each node has a copy of all transactions, eliminating the need for a central governing body as in traditional networks, such as the client-server model.
Scalability – is the ability of the system to adapt to handle an increasing number of transactions and users. In blockchain, the goal is to enable as many transactions as possible in a short period. There are various approaches to increasing scalability through, for example, sidechain and secondary layer technologies, block augmentation, various sharding consensus algorithms, or zero-knowledge proof solutions.
Security – refers to the network's resilience to attacks or abuse, such as double-spending, 51% attacks, or data forgery. Although blockchain is one of the most trustworthy technologies, there are various risks that need to be mitigated as much as possible so that users can enjoy safe use of the network.
Let's look at the practical side of the trilemma, in which priority is placed on two of the three aspects of the network's operation.
Decentralization and security at the cost of scalability – the requirement is to incur significant computational expenses, as each node must perform complex cryptographic calculations and store the increasing size of the blockchain. Scalability loses out, as storing the full transaction history becomes increasingly expensive as the network grows.
Security and scalability at the cost of decentralization – a network may choose to have fewer nodes processing and storing the full transaction history, but this naturally reduces the level of decentralization, reducing the distribution of computing power.
Decentralization and scalability at the cost of security – in this scenario, the network may, for example, opt for less rigorous consensus algorithms requiring lower computing power, but these may be easier to exploit by actors willing to act against the system.
Emerging projects and existing networks seek to optimize and balance the three components mentioned above. They often offer innovative technological solutions, such as rollups and sharding. Blockchain is a technology that is constantly evolving. Over the years, we can expect a variety of approaches to solving this problem - finding a one-size-fits-all answer is unlikely to happen quickly. It's worth keeping an eye on this aspect of blockchain development to remain as informed a blockchain user as possible.
DISCLAIMER
This content does not constitute investment advice, financial advice, trading advice or any other type of advice and should not be considered as such; zondacrypto does not recommend buying, selling or owning any cryptocurrency. Investing in cryptocurrencies involves a high degree of risk. There is a risk of losing invested funds due to changes in cryptocurrency exchange rates.
Travel Rule in zondacrypto pay
The Travel Rule is a new set of guidelines designed to ensure the security of funds for entities transferring ...
Cryptocurrencies and the operation of the financial system
Blockchain and cryptocurrencies are the fuel that drives today's technological and financial reality. Digital ...
Bitcoin – was it the first decentralised project?
Bitcoin is a revolution that has permanently changed the financial landscape. However, before it was announced to ...
How the ZND platform is redefining cryptocurrency trading
How does the ZND platform solve the problems of the crypto world? It's time to lower the barriers to entry and ...
ZND Earn — build passive income on a secure and compliant platform
Crypto investors always have their eyes wide open for innovative ways to maximise returns and generate passive ...
Unlocking the power of ZND token – your guide to tiered benefits
This comprehensive guide will explore the tiered benefits system of ZND tokens and introduce you to the ...
Grow your account with the ZND Loyalty Programme
A Loyalty Programme will be launched on the ZND Platform as early as the end of 2024. This is a huge range of ...
How does the ZND Affiliate Programme work?
Today, we would like to tell you about the Affiliate Programme.
Learn about the ZND platform features
Check out our comprehensive article to understand interesting features of the ZND platform.
The problem of Byzantine Generals – discussion
Long before the advent of Bitcoin in 1982, a theorem was developed to consider making a common, unified decision ...
Turing completeness – what is it, and how does it work?
What do gas, the Ethereum Virtual Machine and Turing completeness have in common? It turns out – a lot. Check out ...
What is asymmetric cryptography?
Blockchain is based on asymmetric cryptography. Learn about its solutions and its benefits. Read the article ...
What are blockchain forks?
In blockchain, the community can decide about the future of a particular network. In specific cases, a split ...
What are the benefits of completing the KYC procedure?
Registering does not mean that your account is verified. Find out what functionalities you have access to at each ...
What is the Ethereum Virtual Machine?
The Ethereum network was launched in 2015, and since then, its popularity has allowed it to position itself as ...
DeFi – discover decentralised finance!
Decentralised finance is an alternative digital space where you can use your virtual assets to perform a variety ...
Complete adoption of cryptocurrencies – what would need to happen?
What would have to happen for cryptocurrencies to become as popular as e-mail, for example? Check out the article ...
The mysterious Satoshi Nakamoto – what do we know about him?
As the adoption of cryptocurrencies progressed, the figure of Satoshi Nakamoto became more and more iconic – but ...
Mining – we explain in simple terms!
Cryptocurrency mining is mostly associated with the Bitcoin network. Although it is a very popular concept in the ...
Layers in a blockchain – overview
Today, we would like to talk about blockchain operations from the side of the protocols. Their collaboration aims to come as close as possible to solving the blockchain trilemma. Find out how this interconnected system works!
Travel rule in zondacrypto exchange - new guidelines related to fund transfer
We have prepared an article for you where we comprehensively discuss the details of the Travel Rule for ...
Scheduled Maintenance (09.12.2024)
We will conduct a scheduled maintenance 06:15 - 07:45 (UTC+1) on 09.12.2024.
We are extending the collection for the Princess Charlene of Monaco Foundation until the end of the year!
zondacrypto's mission goes further than just supporting cryptocurrency adoption. We also engage in charity work, ...
End of November Hunt Airdrop – meet the winners!
We are excited to announce the conclusion of the November Hunt Airdrop! Over the past few weeks, users have ...
Changes related to Tether (USDT) - learn about details delisting USDT and what it means for you
Learn about the details surrounding the USDT delisting process on zondacrypto and ZND platforms, what it means ...
Black Friday in zondacrypto – check out the surprise!
There are days of the year that we look forward to greeting with great enthusiasm. While some have their ...
One month has passed since the listing of the ZND token in Monaco
Time for a brief reminder of why the ZND project is the key to a new era of finance!
zondacrypto becomes the Namer of the Salon Honneur of AS Monaco
Read more about our partnership with AS Monaco!
The burn of 5,600,000 ZND tokens is coming!
Another milestone ahead! A mass burn of ZND tokens is coming in November 2024! It will permanently remove ...
We are launching the ZND token Telegram Campaign – find out the details!
ZND and community engagement are two things that always go hand in hand towards the common goal of being the ...
3.20 Advanced Chart Analysis Techniques
Read about advanced chart analysis techniques.
3.19 Trading strategies based on technical analysis
In today's dynamic world of financial markets, especially in the context of the rapidly growing cryptocurrency ...
3.18 Candlestick patterns that every trader should know
In technical analysis, candlestick charts are one of the most important tools that traders use to analyze price ...
3.17 Price patterns, that every trader should know
List of price patterns that every trader should know.
3.12 Scaling Graphs
Learn about scaling graphs in crypto.
3.11. Recognizing price patterns
Learn and interpret price patterns on charts.
3.05 Chart settings
In this lesson, we will focus on various aspects of chart settings that are key to successful technical analysis.
3.08. Time interval analysis (1m, 5m, 1H, 1D, 1W)
Learn about time interval analysis.
3.07 Reading opening, closing, maximum and minimum prices
Learn about reading opening, closing, maximum and minimum prices.
3.06 Reading price charts
In this lesson, we will focus on learning the basic elements of price charts and developing the ability to ...
Finanza Digitale: Cryptocurrency platform zondacrypto selects Giorgio Chiellini as brand ambassador
Italian Digital Finance describes zondacrypto as a well-known online cryptocurrency trading platform that has become a sponsor of Juventus and the Giro d'Italia, with Giorgio Chiellini as its ambassador.
Crypto Italia: Juventus in the world of cryptocurrencies
Italian portal Crypto Italia talks about football club Juventus F.C. joining the world of cryptocurrencies.
Sport marketing: Our partnership with Juventus and Raków is just the beginning
In an interview with Sport Marketing, we talk about how zondacrypto brings the worlds of sport and finance together. We also reveal what our growth plans are for the coming year.
Telewizja Biznesowa: What will the cryptocurrency law change?
We encourage you to watch and listen to a discussion about the new cryptocurrency law in Poland, during which our CEO, Przemysław Kral, provides insight into the current market situation.
Forbes Polska: Important regulatory changes coming to the cryptocurrency market
Expert opinion from our CEO, Przemyslaw Kral, on the new regulations in the cryptocurrency market.
Forbes Italia: What is zondacrypto?
The Italian edition of Forbes discusses our stock exchange and its activities in Italy.
Sport marketing: Polish company will be visible in the Champions League
The partnership with Juventus football club has been a success for zondacrypto, a cryptocurrency exchange licensed in Italy. The Italian market has become the second most important market in Europe for the company. zondacrypto plans to invest further in sports sponsorship, including women's sports.
wprost biznes: Cooperation of leaders from different industries
The cryptocurrency exchange zondacrypto has partnered with the Giro d'Italia to promote its services and educate about cryptocurrencies. The company plans further activities in the sport and as well as developing its products, including releasing a new mobile app.
wprost: In the special feature on the Giro d'Italia, an interview with the race partner – zondacrypto
In a special feature in the 'wprost' newspaper, we share our heartfelt commitment to cycling and the exhilarating atmosphere of cheering at the Giro d'Italia. zondacrypto's CEO Przemyslaw Kral talks about the merging of the worlds of sport and cycling and a special competition for race fans.
wprost sport: A collaboration at the crossroads of finance and football. zondacrypto and Juventus FC
We are investing in the sports market. Our new partnership with Juventus FC marks a significant milestone in the global growth of our exchange. For more details, see the ‘wprost sport’ interview with Przemysław Kral, CEO of the company.
We use cookies to personalise your experience on zondacrypto - More info
As the name suggests, certain cookies on our websites are necessary. They are necessary for the storage of your settings during the use of zondacrypto (e.g., privacy or language settings) to protect the platform against attacks. You can reject, block or delete them, but this will not impact significantly your experience during the use of this website or even make it impossible to use some of our services. See details
We use such cookies and similar technologies for collecting information while users browse our website to learn more about how it is used and improve our services as necessary. Cookies are also used for measuring the general efficiency of our website. The data generated by them are used on an aggregate and anonymous basis. Blocking these cookies and tools will not affect our services, but will make it difficult for us to improve the experience of their users. See details