Scalability Trilemma
Also known as: Blockchain Design Trade-Off, Tri-Factor Blockchain Challenge, Decentralization vs Scalability
A concept that describes the trade-off between scalability, security, and decentralization in blockchain design.
The Scalability Trilemma is a theory coined by Vitalik Buterin that states a blockchain can optimize for only two out of three core properties: scalability, decentralization, and security. Most early blockchains, like Bitcoin, prioritized decentralization and security but struggled with transaction throughput. Conversely, scaling solutions or newer chains may compromise on decentralization to gain speed. The trilemma guides architectural decisions and has spurred innovations like Layer 2 rollups, sharding, and modular blockchains, each attempting to solve the trilemma without compromise.