All Distributed ledger technologies have the potential to be the trust layer of the internet. Thats what makes them so revolutionary, but it turns out they cant do it at scale just yet.
As I understand this, most Blockchains could solve the various trust issues in the internet without an intermediary somehow but they cant do it fast enough, cheap enough, or securly enough to replace what ever we are using that does require a middleman.
Blockchain networks like Bitcoin have not replaced the current system because Bitcoin cant be fast enough to handle the current demand of transactions per second that Visa is doing without giving away either its decentralization or degree of security. Its a network that was design to get slower as it grows to avoid forks.
If it could there would not be any need for anything else other than Bitcoin. No network can at the moment claim they have solved the Blockchain Trilemma; A term coined by Ethereums creator Vitalik Buterin himself. A belief that a truly decentralized network can only be decentralized and safe or decentralized and fast but it can't be all 3 at the same time.
Right now there is a race to setup a network that is faster, more secure, and scalable than Bitcoin and what ever Visa or any Bank could dream of offering.
Thats what Hedera is trully after. Its a huge experiment trying to disproof this belief.
Hederas Network is currently 2/3
- Its Secure aBFT secure, the most secure a network could get mathematically
- Its fast, 10k tps fast and its cheap, pennies on a dime cheap.
Its just missing the decentralization part, its getting there. But right now only Hedera councils can setup nodes and stake Hbar. When anyone can setup a node and steak their Hbars then we can trully claim Hedera has solved the Blockchain Trilemma. We can say that only Hedera has solved this problem AT SCALE!
Untill then the trillion dollar problem is still up for graves. Im putting all my money on Hederas team.
For more info on why its not decentralized form the getgo and how its going to get there please watch this video.
Top comments (0)