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The crypto trilemma explained - who will find the holy grail of cryptocurrencies?

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The crypto trilemma explained - who will find the holy grail of cryptocurrencies?

(English is not my first language so please be gentle)

No matter what blockchain you are commited to, nobody solved the trilemma so far (a lot of devs and fans will tell you they did, but this is questionable). The considered most secure blockchain (and decentralization is a huge chunk of that) is Bitcoin. It's not the fastest nor the cheapest nor scalable. We have fast / scalable blockchains, but they are criticized to fall behind in decentralization.

You can read the whole article about it here. I'm not an ETH maxi and this is not a shill, but they are pretty honest about it and the explanation on their site is simply well done.

The crypto trilemma explained

This diagram shows what all this is about - Ethereum is pictured in the middle, because that's where the foundation wants Ethereum to be in the future. Most of you may have another opinion on this, especially post merge:

Source for this post: ethereum.org

We seem to have to chose between three options right now:

  1. "Scalable and secure - Increasing the size and power of Ethereum's nodes could increase transactions per second in a secure way, but the hardware requirement would restrict who could do it - this threatens decentralization. It's hoped that sharding and proof-of-stake will allow Ethereum to scale by increasing the amount of nodes, not node size."
  2. "Secure and decentralized - Secure and decentralized blockchain networks require every node to verify every transaction processed by the chain. This amount of work limits the number of transactions that can happen at any one given time. Decentralized and secure reflects the Ethereum chain today."
  3. "Decentralized and scalable - Decentralized networks work by sending information about transactions across nodes - the whole network needs to know about any state change. Scaling transactions per second across a decentralized network poses security risks because the more transactions, the longer the delay, the higher the probability of attack while information is in flight."

Where do you see which coin? Bitcoin for example seems to be #2, Binance Smart Chain is #1 but what could be a good example for #3?

Do you think there is a project that might solve the trilemma?

submitted by /u/ismirschlecht
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