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Smriti S
Smriti S

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Understand security, scalability and decentralization in Blockchain

If you are a blockchain designer, you would have faced a fundamental challenge: how to balance security, scalability, and decentralization. This is also known as the Blockchain Trilemma, a term popularized by Ethereum co-founder Vitalik Buterin.

This blog describes the three pillars, along with methods to solve the trilemma.

trilemma

The Three Pillars of the Trilemma

1. Security

A blockchain must resist attacks and ensure the integrity of data.

  • Transactions should be immutable once confirmed.
  • Malicious actors should not be able to double-spend or alter the history of transactions.
  • Consensus mechanisms (Proof of Work, Proof of Stake, etc.) are designed to make attacks costly and impractical.

Security is non-negotiable; without it, trust in the system collapses.

2. Scalability

Scalability refers to the ability of a blockchain to handle high transaction throughput and low latency.

  • Bitcoin handles ~7 transactions per second.
  • Ethereum handles ~15–30 transactions per second in its base layer.
  • Compare this with Visa, which can process thousands of transactions per second.

Scalability is critical if blockchains want to support mass adoption for payments, gaming, or enterprise applications.

3. Decentralization

Decentralization ensures no single party controls the system.

  • Nodes are distributed globally, making censorship difficult.
  • Anyone can participate in validating the transactions (permission-less).
  • Power is spread among users, not concentrated in a few hands.

The more decentralized a system, the harder it is to shut it down or manipulate it.

Why is it a trilemma?

The challenge is that achieving all three pillars at once is extremely difficult:

  • If you maximize decentralization and security (like Bitcoin), you often sacrifice scalability.
  • If you prioritize scalability and security (like some private/permissioned blockchains), you reduce decentralization.
  • If you chase decentralization and scalability, you may compromise security due to weaker validation.

In short, most blockchain designs can excel at two dimensions but must compromise on the third.

How can you solve the trilemma?

1. Layer 2 Solutions
- Rollups (Optimistic, ZK-Rollups) move transactions off-chain and settle on the main chain. For example: Arbitrum, zkSync.

2. Sharding
- Splitting the blockchain into smaller “shards” that process subsets of transactions in parallel. For example, Ethereum’s upcoming roadmap includes sharding.

3. Hybrid Consensus Models
- Combining Proof of Stake with other mechanisms for efficiency. For example, Polkadot’s nominated Proof of Stake.

4. Sidechains and App-Specific Chains
- Specialized chains connected to a main network via bridges. For example, Polygon, Cosmos zones.

Conclusion

For developers, architects, and decision-makers, the trilemma isn’t just theoretical. It directly impacts the user experience (slow or costly transactions), system resilience (how hard it is to attack) and governance (who really controls the network).

Every blockchain project implicitly makes trade-offs. Understanding the trilemma helps you evaluate whether a platform is suited to your use case or no.

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