{"id":861,"date":"2022-04-15T15:29:00","date_gmt":"2022-04-15T15:29:00","guid":{"rendered":"https:\/\/moneymade.wpenginepowered.com\/?p=861"},"modified":"2025-06-03T15:05:44","modified_gmt":"2025-06-03T15:05:44","slug":"blockchain-trilemma","status":"publish","type":"post","link":"https:\/\/moneymade.io\/learn\/articles\/blockchain-trilemma\/","title":{"rendered":"The Holy Grail of Crypto: Solving the Blockchain Trilemma"},"content":{"rendered":"\n<p><strong><em>This one simple concept is what separates future-proof crypto projects from shoddy crypto coins.<\/em><\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/moneymade.io\/learn\/wp-content\/uploads\/2025\/05\/Money_Made_Holy_Grail1_Article_MO_4dffd45ff4.png\" alt=\"The Holy Grail of Crypto: Solving the Blockchain Trilemma\"\/><\/figure>\n\n\n\n<p>\u201cYou can have it good, fast, or cheap. Pick any two.\u201d<\/p>\n\n\n\n<p>This so-called Project Management Triangle refers to the unavoidable trade-off engineers have to make during the development process.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>The blockchain trilemma is a framework that says that every public blockchain has to sacrifice on one of three features: decentralization, security or scalability.<\/p>\n<\/blockquote>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><\/blockquote>\n\n\n\n<p>Now the key to solving the Project Management Triangle is prioritization. In other words, what matters most to you and your users? Turns out, crypto developers have their own version of the Project Management Triangle called the Blockchain Trilemma.<\/p>\n\n\n\n<p>But why should you care? Well, the way each project goes about solving the Blockchain Trilemma will determine whether:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>All token holders have equal access and voting power in the network<\/li>\n\n\n\n<li>The network can resist attacks that try to shut it down or steal funds from user wallets<\/li>\n\n\n\n<li>Your favorite project will be able to support mainstream adoption<\/li>\n<\/ul>\n\n\n\n<p>A blockchain project that can do all three of those things will have found the holy grail of crypto: a lasting solution to the Blockchain Trilemma. In this article, we\u2019ll explore the root of the problem, how Layer 1 and Layer 2 solutions are trying to solve the trilemma, and how five of the top blockchain projects stack up in that regard.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-the-pros-and-cons-of-decentralized-networks\">The pros and cons of decentralized networks<\/h3>\n\n\n\n<p>To understand the Blockchain Trilemma, we first have to understand the differences between centralized and decentralized networks.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-centralized-networks\"><strong>Centralized networks<\/strong><\/h4>\n\n\n\n<p>A centralized network is a group of interconnected computers (i.e. nodes) that depend on one master node to store and process data. Most of the web apps we use today, like Google, YouTube and Facebook, are built as centralized networks that serve content to end-user devices.<\/p>\n\n\n\n<p>There&#8217;s a good reason for that too. Centralized networks are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Faster because all nodes answer to one master.<\/li>\n\n\n\n<li>Easier to maintain because only one server needs to be updated.<\/li>\n<\/ul>\n\n\n\n<p>But on the flipside, centralized networks are also:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>More prone to crashes because they have a single point of failure.<\/li>\n\n\n\n<li>More vulnerable hacks because attackers only need to compromise one target.<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-distributed-amp-decentralized-networks\"><strong>Distributed &amp; decentralized networks<\/strong><\/h4>\n\n\n\n<p>Distributed networks, on the other hand, consist of interconnected nodes that share the workload. These nodes are often spread out across the globe but might still follow some kind of leadership hierarchy. Hence, distributed networks still allow for partial centralization.<\/p>\n\n\n\n<p>The internet is the largest example of a distributed network, consisting of internet service providers (ISPs) that are privately owned (centralized) by large corporations.&nbsp;<\/p>\n\n\n\n<p>A decentralized network takes the idea of distributed networks one step further by removing all forms of centralized leadership (in theory). To make the whole system work, nodes have to agree (i.e. reach a consensus) on what records are valid. The particular method they use to make decisions is called a consensus mechanism.&nbsp;<\/p>\n\n\n\n<p>In doing so, decentralized networks are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>More resilient, as one failed node doesn\u2019t bring down the whole system<\/li>\n\n\n\n<li>More transparent since data is broadcasted for everyone to see<\/li>\n\n\n\n<li>More corruption-resistant, since attackers can\u2019t manipulate the system without help from a majority<\/li>\n<\/ul>\n\n\n\n<p>But decentralized networks do have their trade-offs, like:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>They are difficult to maintain because every single node needs to be updated.<\/li>\n\n\n\n<li>You can\u2019t police bad actors because the system is permissionless.<\/li>\n\n\n\n<li>Not every node is equal, some have more data and processing capabilities than others.<\/li>\n<\/ul>\n\n\n\n<p>While there are many unique challenges to running decentralized networks, most of them can be grouped into 3 categories that make up the blockchain trilemma.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-what-is-the-blockchain-trilemma\">What is the Blockchain Trilemma?<\/h3>\n\n\n\n<p>The blockchain trilemma is a framework that says that every public blockchain has to sacrifice one of three features: decentralization, security, or scalability. Let\u2019s dive into each.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-decentralization\"><strong>Decentralization<\/strong><\/h4>\n\n\n\n<p>One key thing is required for decentralization: a large number of independent nodes distributed across the globe. But here\u2019s the kicker. Since every single node has to reach consensus before a transaction is finalized, becoming more decentralized actually slows down a network. And that\u2019s not good for global adoption.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-security\"><strong>Security<\/strong><\/h4>\n\n\n\n<p>Now to make a network faster, you actually want to reduce the total number or distance between nodes. But that raises the issue of security.<\/p>\n\n\n\n<p>For a distributed network to reach consensus, a majority (51%) of nodes have to agree. So the fewer nodes there are, the easier it becomes for hackers to take control of the network through a 51% attack and print infinite money for themselves (also called the double-spending problem).<\/p>\n\n\n\n<p>A fork of the Ethereum network (ETH) called Ethereum Classic (ETC) actually suffered from 51% attacks multiple times in 2020, costing users millions of dollars. All because the network was too small and thus easy to control.<\/p>\n\n\n\n<p>In addition to that, blockchain security requires each node to have skin in the game. In other words, it needs to cost them something to participate\u2014for instance, computing power or financial collateral.<\/p>\n\n\n\n<p>But why? Otherwise, malicious actors would carry out Sybil attacks, spamming a network with transactions until it crashes. Solana (SOL), for instance, was knocked offline on September 14, 2021, after hackers flooded the network with up to 400K transactions per second.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-scalability\"><strong>Scalability<\/strong><\/h4>\n\n\n\n<p>Okay so clearly decentralization and security are non-negotiable. But what does that mean for scalability, a blockchain\u2019s ability to maintain or increase speed even as new users join the network?<\/p>\n\n\n\n<p>For blockchains that don\u2019t want to compromise on decentralization, that means slower transactions. Bitcoin, for instance, is only able to process 7 transactions per second (TPS). Blockchains like BNB, on the other hand, choose to be centralized for the sake of blazing-fast transaction speeds.<\/p>\n\n\n\n<p>Scalability is ultimately necessary for blockchains to be able to rival legacy networks like Visa, which can process up to 65K transactions per second. So how are the leading blockchains aiming to scale?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-solutions-to-the-blockchain-trilemma\">Solutions to the Blockchain Trilemma<\/h3>\n\n\n\n<p>Two of the most common buzzwords in crypto are Layer 1 and Layer 2 solutions. But what do they mean and why are they essential to blockchain scalability?<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-layer-1-solutions\"><strong>Layer 1 solutions<\/strong><\/h4>\n\n\n\n<p>A Layer 1 solution is an attempt to change the internal rules of a major blockchain to make it faster and more efficient. Examples of layer 1 solutions include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Increasing block size so that more transactions can be fit into each block.<\/li>\n\n\n\n<li>Increasing the rate at which each block is confirmed.<\/li>\n\n\n\n<li>Breaking transactions into shards that can be processed in parallel. Zilliqa, for instance, does this.<\/li>\n\n\n\n<li>Transitioning to a less energy-intensive consensus mechanism.<\/li>\n<\/ul>\n\n\n\n<p>Ethereum\u2019s upgrade to Proof-of-Stake (PoS) is one example of the latter solution. While Proof-of-Work (PoW) requires miners to use substantial computing power, PoS only requires validators to put up enough financial collateral to secure the network.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-layer-2-solutions\"><strong>Layer 2 solutions<\/strong><\/h4>\n\n\n\n<p>A Layer 2 solution is a third-party tool that connects to a major blockchain and takes some of the load off. And after layer 2 is done processing, it sends the results back to the main chain. Examples of Layer 2 solutions include the Lightning Network for Bitcoin and Polygon (MATIC) for Ethereum.<\/p>\n\n\n\n<p>At the end of the day, layer 2 solutions allow major blockchains to have their cake (decentralization, security) and eat it too (scalability). Hell, projects like Ethereum and Cardano (ADA) combine both Layer 1 and 2 solutions to eke out every last drop of network performance.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-how-top-crypto-projects-are-solving-the-blockchain-trilemma\">How top crypto projects are solving the Blockchain Trilemma<\/h3>\n\n\n\n<p>Measuring how well each project solves the blockchain trilemma is a hard task. Even more so when comparing networks with different consensus mechanisms or definitions of what constitutes a transaction.<\/p>\n\n\n\n<p>But trying to measure this is still necessary in order to know if a project has true staying power. And to make this more of an apples-to-apples comparison, we\u2019ll only focus on Proof-of-Stake (PoS) smart contract platforms.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-decentralization-amp-security\"><strong>Decentralization &amp; Security<\/strong><\/h4>\n\n\n\n<p>These two pillars of the Blockchain Trilemma can be measured by variables like:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The total value staked in the network<\/li>\n\n\n\n<li>The percentage of the total coin supply that\u2019s staked<\/li>\n\n\n\n<li>The requirements to become a validator\u2014the lower the better<\/li>\n\n\n\n<li>The total number of validators<\/li>\n\n\n\n<li>Whether there\u2019s a saturation limit for staking, which incentivizes users to stake to smaller pools<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><\/td><td>Ethereum (ETH)<\/td><td>Solana (SOL)<\/td><td>Cardano (ADA)<\/td><td>Terra (LUNA)<\/td><td>Avalanche (AVAX)<\/td><\/tr><tr><td><strong>Total Stake<\/strong><\/td><td>$33.9B<\/td><td>$40B<\/td><td>$24.12B<\/td><td>$27B<\/td><td>$21B<\/td><\/tr><tr><td><strong>Participation Rate<\/strong><\/td><td>9.12%<\/td><td>74.71%<\/td><td>71.92%<\/td><td>42.39%<\/td><td>67.63%<\/td><\/tr><tr><td><strong>Validator Count<\/strong><\/td><td>335K<\/td><td>1,789<\/td><td>3,215<\/td><td>130<\/td><td>1,438<\/td><\/tr><tr><td><strong>Validator Requirements<\/strong><\/td><td>High<\/td><td>High<\/td><td>Low<\/td><td>Medium<\/td><td>Low<\/td><\/tr><tr><td><strong>Saturation Limit<\/strong><\/td><td>No<\/td><td>No<\/td><td>Yes<\/td><td>No<\/td><td>No<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-scalability-0\"><strong>Scalability<\/strong><\/h4>\n\n\n\n<p>The key variables that determine blockchain scalability are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Block size:<\/strong> A block is a bundle of transactions, with size limiting how many transactions can be processed in one epoch.<\/li>\n\n\n\n<li><strong>Block time:<\/strong> How long it takes validators to verify transactions within one block.<\/li>\n\n\n\n<li><strong>TPS:<\/strong> The number of transactions that a blockchain can handle per second. In the below table, I don\u2019t consider a blockchain\u2019s theoretical TPS, only the current one.<\/li>\n\n\n\n<li><strong>Transaction cost:<\/strong> A fee that\u2019s charged to process transactions. Higher fees make a blockchain less usable (but ironically more secure).<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><\/td><td>Ethereum (ETH)<\/td><td>Solana (SOL)<\/td><td>Cardano (ADA)<\/td><td>Terra (LUNA)<\/td><td>Avalanche (AVAX)<\/td><\/tr><tr><td><strong>Block size<\/strong><\/td><td>Around 1 MB<\/td><td>10 MB<\/td><td>80 KB<\/td><td>N\/A<\/td><td>N\/A<\/td><\/tr><tr><td><strong>Block time<\/strong><\/td><td>12-14s<\/td><td>400 ms<\/td><td>20s<\/td><td>6-8s<\/td><td>0.80s<\/td><\/tr><tr><td><strong>TPS<\/strong><\/td><td>11.67<\/td><td>1,212<\/td><td>250<\/td><td>1,000 (according to the founder)<\/td><td>10.12<\/td><\/tr><tr><td><strong>Average fee<\/strong><\/td><td>$49.65<\/td><td>$0.00025<\/td><td>$0.47<\/td><td>0.6% of every tx<\/td><td>~ 80 nAVAX<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Welp, that\u2019s a wrap. In addition to giving you some tools to compare blockchain projects, here are a few takeaways and disclaimers:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Decentralization, security, and scalability exist on a spectrum, and none of the major blockchains are entirely good or bad.<\/li>\n\n\n\n<li>Each component of the blockchain trilemma is affected by an array of variables, and we can\u2019t measure every single one.<\/li>\n\n\n\n<li>Reliable data isn\u2019t always available, so I relied on metrics that can be verified for the most part.<\/li>\n\n\n\n<li>Choosing a different set of metrics from the ones listed above can paint an entirely new picture of each blockchain\u2019s competitiveness.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>This one simple concept is what separates future-proof crypto projects from shoddy crypto coins. \u201cYou can have it good, fast, or cheap. Pick any two.\u201d This so-called Project Management Triangle refers to the unavoidable trade-off engineers have to make during the development process. The blockchain trilemma is a framework that says that every public blockchain [&hellip;]<\/p>\n","protected":false},"author":11,"featured_media":871,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":true,"footnotes":""},"categories":[3],"tags":[40,77,22],"post_authors":[81],"class_list":["post-861","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","tag-advanced-investing","tag-alternative-investing","tag-cryptocurrency"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.1 (Yoast SEO v25.2) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Holy Grail of Crypto: Solving the Blockchain Trilemma | MoneyMade<\/title>\n<meta name=\"description\" content=\"This one simple concept is what separates future-proof crypto projects from shitcoins.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, 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minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/moneymade.io\/learn\/articles\/blockchain-trilemma\/#article","isPartOf":{"@id":"https:\/\/moneymade.io\/learn\/articles\/blockchain-trilemma\/"},"author":{"name":"Dustin O'Halloran","@id":"https:\/\/moneymade.io\/learn\/#\/schema\/person\/17e6958e1b252651d79ec9267f19b10a"},"headline":"The Holy Grail of Crypto: Solving the Blockchain Trilemma","datePublished":"2022-04-15T15:29:00+00:00","dateModified":"2025-06-03T15:05:44+00:00","mainEntityOfPage":{"@id":"https:\/\/moneymade.io\/learn\/articles\/blockchain-trilemma\/"},"wordCount":1628,"commentCount":0,"publisher":{"@id":"https:\/\/moneymade.io\/learn\/#organization"},"image":{"@id":"https:\/\/moneymade.io\/learn\/articles\/blockchain-trilemma\/#primaryimage"},"thumbnailUrl":"https:\/\/moneymade.io\/learn\/wp-content\/uploads\/2025\/05\/Money_Made_Holy_Grail1_Article_MO_4dffd45ff4.png","keywords":["Advanced Investing","Alternative 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Holy Grail of Crypto: Solving the Blockchain Trilemma"}]},{"@type":"WebSite","@id":"https:\/\/moneymade.io\/learn\/#website","url":"https:\/\/moneymade.io\/learn\/","name":"MoneyMade","description":"Make Money Moves That Matter.","publisher":{"@id":"https:\/\/moneymade.io\/learn\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/moneymade.io\/learn\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/moneymade.io\/learn\/#organization","name":"MoneyMade","url":"https:\/\/moneymade.io\/learn\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/moneymade.io\/learn\/#\/schema\/logo\/image\/","url":"https:\/\/moneymade.io\/learn\/wp-content\/uploads\/2025\/05\/Copy-of-MoneyMade-Icon-Default.svg","contentUrl":"https:\/\/moneymade.io\/learn\/wp-content\/uploads\/2025\/05\/Copy-of-MoneyMade-Icon-Default.svg","width":96,"height":96,"caption":"MoneyMade"},"image":{"@id":"https:\/\/moneymade.io\/learn\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/moneymade.io\/learn\/#\/schema\/person\/17e6958e1b252651d79ec9267f19b10a","name":"Dustin O'Halloran","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/moneymade.io\/learn\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/e2490c84da8802839003ed599f49fe8d7c696422d58e7eeb5e57c6f920702ea1?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/e2490c84da8802839003ed599f49fe8d7c696422d58e7eeb5e57c6f920702ea1?s=96&d=mm&r=g","caption":"Dustin O'Halloran"},"url":"https:\/\/moneymade.io\/learn\/author\/dustin\/"}]}},"fig_blocks":[{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p><strong><em>This one simple concept is what separates future-proof crypto projects from shoddy crypto coins.<\/em><\/strong><\/p>\n","innerContent":["\n<p><strong><em>This one simple concept is what separates future-proof crypto projects from shoddy crypto coins.<\/em><\/strong><\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/image","attrs":[],"innerBlocks":[],"innerHTML":"\n<figure class=\"wp-block-image\"><img src=\"https:\/\/moneymade.io\/learn\/wp-content\/uploads\/2025\/05\/Money_Made_Holy_Grail1_Article_MO_4dffd45ff4.png\" alt=\"The Holy Grail of Crypto: Solving the Blockchain Trilemma\"\/><\/figure>\n","innerContent":["\n<figure class=\"wp-block-image\"><img src=\"https:\/\/moneymade.io\/learn\/wp-content\/uploads\/2025\/05\/Money_Made_Holy_Grail1_Article_MO_4dffd45ff4.png\" alt=\"The Holy Grail of Crypto: Solving the Blockchain Trilemma\"\/><\/figure>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>\u201cYou can have it good, fast, or cheap. Pick any two.\u201d<\/p>\n","innerContent":["\n<p>\u201cYou can have it good, fast, or cheap. Pick any two.\u201d<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>This so-called Project Management Triangle refers to the unavoidable trade-off engineers have to make during the development process.<\/p>\n","innerContent":["\n<p>This so-called Project Management Triangle refers to the unavoidable trade-off engineers have to make during the development process.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/quote","attrs":[],"innerBlocks":[{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>The blockchain trilemma is a framework that says that every public blockchain has to sacrifice on one of three features: decentralization, security or scalability.<\/p>\n","innerContent":["\n<p>The blockchain trilemma is a framework that says that every public blockchain has to sacrifice on one of three features: decentralization, security or scalability.<\/p>\n"]}],"innerHTML":"\n<blockquote class=\"wp-block-quote\"><\/blockquote>\n","innerContent":["\n<blockquote class=\"wp-block-quote\">",null,"<\/blockquote>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/quote","attrs":[],"innerBlocks":[],"innerHTML":"\n<blockquote class=\"wp-block-quote\"><\/blockquote>\n","innerContent":["\n<blockquote class=\"wp-block-quote\"><\/blockquote>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Now the key to solving the Project Management Triangle is prioritization. In other words, what matters most to you and your users? Turns out, crypto developers have their own version of the Project Management Triangle called the Blockchain Trilemma.<\/p>\n","innerContent":["\n<p>Now the key to solving the Project Management Triangle is prioritization. In other words, what matters most to you and your users? Turns out, crypto developers have their own version of the Project Management Triangle called the Blockchain Trilemma.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>But why should you care? Well, the way each project goes about solving the Blockchain Trilemma will determine whether:<\/p>\n","innerContent":["\n<p>But why should you care? Well, the way each project goes about solving the Blockchain Trilemma will determine whether:<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/list","attrs":[],"innerBlocks":[{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>All token holders have equal access and voting power in the network<\/li>\n","innerContent":["\n<li>All token holders have equal access and voting power in the network<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>The network can resist attacks that try to shut it down or steal funds from user wallets<\/li>\n","innerContent":["\n<li>The network can resist attacks that try to shut it down or steal funds from user wallets<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>Your favorite project will be able to support mainstream adoption<\/li>\n","innerContent":["\n<li>Your favorite project will be able to support mainstream adoption<\/li>\n"]}],"innerHTML":"\n<ul class=\"wp-block-list\">\n\n\n\n<\/ul>\n","innerContent":["\n<ul class=\"wp-block-list\">",null,"\n\n",null,"\n\n",null,"<\/ul>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>A blockchain project that can do all three of those things will have found the holy grail of crypto: a lasting solution to the Blockchain Trilemma. In this article, we\u2019ll explore the root of the problem, how Layer 1 and Layer 2 solutions are trying to solve the trilemma, and how five of the top blockchain projects stack up in that regard.<\/p>\n","innerContent":["\n<p>A blockchain project that can do all three of those things will have found the holy grail of crypto: a lasting solution to the Blockchain Trilemma. In this article, we\u2019ll explore the root of the problem, how Layer 1 and Layer 2 solutions are trying to solve the trilemma, and how five of the top blockchain projects stack up in that regard.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/heading","attrs":{"level":3},"innerBlocks":[],"innerHTML":"\n<h3 class=\"wp-block-heading\" id=\"h-the-pros-and-cons-of-decentralized-networks\">The pros and cons of decentralized networks<\/h3>\n","innerContent":["\n<h3 class=\"wp-block-heading\" id=\"h-the-pros-and-cons-of-decentralized-networks\">The pros and cons of decentralized networks<\/h3>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>To understand the Blockchain Trilemma, we first have to understand the differences between centralized and decentralized networks.<\/p>\n","innerContent":["\n<p>To understand the Blockchain Trilemma, we first have to understand the differences between centralized and decentralized networks.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/heading","attrs":{"level":4},"innerBlocks":[],"innerHTML":"\n<h4 class=\"wp-block-heading\" id=\"h-centralized-networks\"><strong>Centralized networks<\/strong><\/h4>\n","innerContent":["\n<h4 class=\"wp-block-heading\" id=\"h-centralized-networks\"><strong>Centralized networks<\/strong><\/h4>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>A centralized network is a group of interconnected computers (i.e. nodes) that depend on one master node to store and process data. Most of the web apps we use today, like Google, YouTube and Facebook, are built as centralized networks that serve content to end-user devices.<\/p>\n","innerContent":["\n<p>A centralized network is a group of interconnected computers (i.e. nodes) that depend on one master node to store and process data. Most of the web apps we use today, like Google, YouTube and Facebook, are built as centralized networks that serve content to end-user devices.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>There's a good reason for that too. Centralized networks are:<\/p>\n","innerContent":["\n<p>There's a good reason for that too. Centralized networks are:<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/list","attrs":[],"innerBlocks":[{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>Faster because all nodes answer to one master.<\/li>\n","innerContent":["\n<li>Faster because all nodes answer to one master.<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>Easier to maintain because only one server needs to be updated.<\/li>\n","innerContent":["\n<li>Easier to maintain because only one server needs to be updated.<\/li>\n"]}],"innerHTML":"\n<ul class=\"wp-block-list\">\n\n<\/ul>\n","innerContent":["\n<ul class=\"wp-block-list\">",null,"\n\n",null,"<\/ul>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>But on the flipside, centralized networks are also:<\/p>\n","innerContent":["\n<p>But on the flipside, centralized networks are also:<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/list","attrs":[],"innerBlocks":[{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>More prone to crashes because they have a single point of failure.<\/li>\n","innerContent":["\n<li>More prone to crashes because they have a single point of failure.<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>More vulnerable hacks because attackers only need to compromise one target.<\/li>\n","innerContent":["\n<li>More vulnerable hacks because attackers only need to compromise one target.<\/li>\n"]}],"innerHTML":"\n<ul class=\"wp-block-list\">\n\n<\/ul>\n","innerContent":["\n<ul class=\"wp-block-list\">",null,"\n\n",null,"<\/ul>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/heading","attrs":{"level":4},"innerBlocks":[],"innerHTML":"\n<h4 class=\"wp-block-heading\" id=\"h-distributed-amp-decentralized-networks\"><strong>Distributed &amp; decentralized networks<\/strong><\/h4>\n","innerContent":["\n<h4 class=\"wp-block-heading\" id=\"h-distributed-amp-decentralized-networks\"><strong>Distributed &amp; decentralized networks<\/strong><\/h4>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Distributed networks, on the other hand, consist of interconnected nodes that share the workload. These nodes are often spread out across the globe but might still follow some kind of leadership hierarchy. Hence, distributed networks still allow for partial centralization.<\/p>\n","innerContent":["\n<p>Distributed networks, on the other hand, consist of interconnected nodes that share the workload. These nodes are often spread out across the globe but might still follow some kind of leadership hierarchy. Hence, distributed networks still allow for partial centralization.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>The internet is the largest example of a distributed network, consisting of internet service providers (ISPs) that are privately owned (centralized) by large corporations.&nbsp;<\/p>\n","innerContent":["\n<p>The internet is the largest example of a distributed network, consisting of internet service providers (ISPs) that are privately owned (centralized) by large corporations.&nbsp;<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>A decentralized network takes the idea of distributed networks one step further by removing all forms of centralized leadership (in theory). To make the whole system work, nodes have to agree (i.e. reach a consensus) on what records are valid. The particular method they use to make decisions is called a consensus mechanism.&nbsp;<\/p>\n","innerContent":["\n<p>A decentralized network takes the idea of distributed networks one step further by removing all forms of centralized leadership (in theory). To make the whole system work, nodes have to agree (i.e. reach a consensus) on what records are valid. The particular method they use to make decisions is called a consensus mechanism.&nbsp;<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>In doing so, decentralized networks are:<\/p>\n","innerContent":["\n<p>In doing so, decentralized networks are:<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/list","attrs":[],"innerBlocks":[{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>More resilient, as one failed node doesn\u2019t bring down the whole system<\/li>\n","innerContent":["\n<li>More resilient, as one failed node doesn\u2019t bring down the whole system<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>More transparent since data is broadcasted for everyone to see<\/li>\n","innerContent":["\n<li>More transparent since data is broadcasted for everyone to see<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>More corruption-resistant, since attackers can\u2019t manipulate the system without help from a majority<\/li>\n","innerContent":["\n<li>More corruption-resistant, since attackers can\u2019t manipulate the system without help from a majority<\/li>\n"]}],"innerHTML":"\n<ul class=\"wp-block-list\">\n\n\n\n<\/ul>\n","innerContent":["\n<ul class=\"wp-block-list\">",null,"\n\n",null,"\n\n",null,"<\/ul>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>But decentralized networks do have their trade-offs, like:<\/p>\n","innerContent":["\n<p>But decentralized networks do have their trade-offs, like:<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/list","attrs":[],"innerBlocks":[{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>They are difficult to maintain because every single node needs to be updated.<\/li>\n","innerContent":["\n<li>They are difficult to maintain because every single node needs to be updated.<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>You can\u2019t police bad actors because the system is permissionless.<\/li>\n","innerContent":["\n<li>You can\u2019t police bad actors because the system is permissionless.<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>Not every node is equal, some have more data and processing capabilities than others.<\/li>\n","innerContent":["\n<li>Not every node is equal, some have more data and processing capabilities than others.<\/li>\n"]}],"innerHTML":"\n<ul class=\"wp-block-list\">\n\n\n\n<\/ul>\n","innerContent":["\n<ul class=\"wp-block-list\">",null,"\n\n",null,"\n\n",null,"<\/ul>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>While there are many unique challenges to running decentralized networks, most of them can be grouped into 3 categories that make up the blockchain trilemma.<\/p>\n","innerContent":["\n<p>While there are many unique challenges to running decentralized networks, most of them can be grouped into 3 categories that make up the blockchain trilemma.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/heading","attrs":{"level":3},"innerBlocks":[],"innerHTML":"\n<h3 class=\"wp-block-heading\" id=\"h-what-is-the-blockchain-trilemma\">What is the Blockchain Trilemma?<\/h3>\n","innerContent":["\n<h3 class=\"wp-block-heading\" id=\"h-what-is-the-blockchain-trilemma\">What is the Blockchain Trilemma?<\/h3>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>The blockchain trilemma is a framework that says that every public blockchain has to sacrifice one of three features: decentralization, security, or scalability. Let\u2019s dive into each.<\/p>\n","innerContent":["\n<p>The blockchain trilemma is a framework that says that every public blockchain has to sacrifice one of three features: decentralization, security, or scalability. Let\u2019s dive into each.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/heading","attrs":{"level":4},"innerBlocks":[],"innerHTML":"\n<h4 class=\"wp-block-heading\" id=\"h-decentralization\"><strong>Decentralization<\/strong><\/h4>\n","innerContent":["\n<h4 class=\"wp-block-heading\" id=\"h-decentralization\"><strong>Decentralization<\/strong><\/h4>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>One key thing is required for decentralization: a large number of independent nodes distributed across the globe. But here\u2019s the kicker. Since every single node has to reach consensus before a transaction is finalized, becoming more decentralized actually slows down a network. And that\u2019s not good for global adoption.<\/p>\n","innerContent":["\n<p>One key thing is required for decentralization: a large number of independent nodes distributed across the globe. But here\u2019s the kicker. Since every single node has to reach consensus before a transaction is finalized, becoming more decentralized actually slows down a network. And that\u2019s not good for global adoption.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/heading","attrs":{"level":4},"innerBlocks":[],"innerHTML":"\n<h4 class=\"wp-block-heading\" id=\"h-security\"><strong>Security<\/strong><\/h4>\n","innerContent":["\n<h4 class=\"wp-block-heading\" id=\"h-security\"><strong>Security<\/strong><\/h4>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Now to make a network faster, you actually want to reduce the total number or distance between nodes. But that raises the issue of security.<\/p>\n","innerContent":["\n<p>Now to make a network faster, you actually want to reduce the total number or distance between nodes. But that raises the issue of security.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>For a distributed network to reach consensus, a majority (51%) of nodes have to agree. So the fewer nodes there are, the easier it becomes for hackers to take control of the network through a 51% attack and print infinite money for themselves (also called the double-spending problem).<\/p>\n","innerContent":["\n<p>For a distributed network to reach consensus, a majority (51%) of nodes have to agree. So the fewer nodes there are, the easier it becomes for hackers to take control of the network through a 51% attack and print infinite money for themselves (also called the double-spending problem).<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>A fork of the Ethereum network (ETH) called Ethereum Classic (ETC) actually suffered from 51% attacks multiple times in 2020, costing users millions of dollars. All because the network was too small and thus easy to control.<\/p>\n","innerContent":["\n<p>A fork of the Ethereum network (ETH) called Ethereum Classic (ETC) actually suffered from 51% attacks multiple times in 2020, costing users millions of dollars. All because the network was too small and thus easy to control.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>In addition to that, blockchain security requires each node to have skin in the game. In other words, it needs to cost them something to participate\u2014for instance, computing power or financial collateral.<\/p>\n","innerContent":["\n<p>In addition to that, blockchain security requires each node to have skin in the game. In other words, it needs to cost them something to participate\u2014for instance, computing power or financial collateral.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>But why? Otherwise, malicious actors would carry out Sybil attacks, spamming a network with transactions until it crashes. Solana (SOL), for instance, was knocked offline on September 14, 2021, after hackers flooded the network with up to 400K transactions per second.<\/p>\n","innerContent":["\n<p>But why? Otherwise, malicious actors would carry out Sybil attacks, spamming a network with transactions until it crashes. Solana (SOL), for instance, was knocked offline on September 14, 2021, after hackers flooded the network with up to 400K transactions per second.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/heading","attrs":{"level":4},"innerBlocks":[],"innerHTML":"\n<h4 class=\"wp-block-heading\" id=\"h-scalability\"><strong>Scalability<\/strong><\/h4>\n","innerContent":["\n<h4 class=\"wp-block-heading\" id=\"h-scalability\"><strong>Scalability<\/strong><\/h4>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Okay so clearly decentralization and security are non-negotiable. But what does that mean for scalability, a blockchain\u2019s ability to maintain or increase speed even as new users join the network?<\/p>\n","innerContent":["\n<p>Okay so clearly decentralization and security are non-negotiable. But what does that mean for scalability, a blockchain\u2019s ability to maintain or increase speed even as new users join the network?<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>For blockchains that don\u2019t want to compromise on decentralization, that means slower transactions. Bitcoin, for instance, is only able to process 7 transactions per second (TPS). Blockchains like BNB, on the other hand, choose to be centralized for the sake of blazing-fast transaction speeds.<\/p>\n","innerContent":["\n<p>For blockchains that don\u2019t want to compromise on decentralization, that means slower transactions. Bitcoin, for instance, is only able to process 7 transactions per second (TPS). Blockchains like BNB, on the other hand, choose to be centralized for the sake of blazing-fast transaction speeds.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Scalability is ultimately necessary for blockchains to be able to rival legacy networks like Visa, which can process up to 65K transactions per second. So how are the leading blockchains aiming to scale?<\/p>\n","innerContent":["\n<p>Scalability is ultimately necessary for blockchains to be able to rival legacy networks like Visa, which can process up to 65K transactions per second. So how are the leading blockchains aiming to scale?<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/heading","attrs":{"level":3},"innerBlocks":[],"innerHTML":"\n<h3 class=\"wp-block-heading\" id=\"h-solutions-to-the-blockchain-trilemma\">Solutions to the Blockchain Trilemma<\/h3>\n","innerContent":["\n<h3 class=\"wp-block-heading\" id=\"h-solutions-to-the-blockchain-trilemma\">Solutions to the Blockchain Trilemma<\/h3>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Two of the most common buzzwords in crypto are Layer 1 and Layer 2 solutions. But what do they mean and why are they essential to blockchain scalability?<\/p>\n","innerContent":["\n<p>Two of the most common buzzwords in crypto are Layer 1 and Layer 2 solutions. But what do they mean and why are they essential to blockchain scalability?<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/heading","attrs":{"level":4},"innerBlocks":[],"innerHTML":"\n<h4 class=\"wp-block-heading\" id=\"h-layer-1-solutions\"><strong>Layer 1 solutions<\/strong><\/h4>\n","innerContent":["\n<h4 class=\"wp-block-heading\" id=\"h-layer-1-solutions\"><strong>Layer 1 solutions<\/strong><\/h4>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>A Layer 1 solution is an attempt to change the internal rules of a major blockchain to make it faster and more efficient. Examples of layer 1 solutions include:<\/p>\n","innerContent":["\n<p>A Layer 1 solution is an attempt to change the internal rules of a major blockchain to make it faster and more efficient. Examples of layer 1 solutions include:<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/list","attrs":[],"innerBlocks":[{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>Increasing block size so that more transactions can be fit into each block.<\/li>\n","innerContent":["\n<li>Increasing block size so that more transactions can be fit into each block.<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>Increasing the rate at which each block is confirmed.<\/li>\n","innerContent":["\n<li>Increasing the rate at which each block is confirmed.<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>Breaking transactions into shards that can be processed in parallel. Zilliqa, for instance, does this.<\/li>\n","innerContent":["\n<li>Breaking transactions into shards that can be processed in parallel. Zilliqa, for instance, does this.<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>Transitioning to a less energy-intensive consensus mechanism.<\/li>\n","innerContent":["\n<li>Transitioning to a less energy-intensive consensus mechanism.<\/li>\n"]}],"innerHTML":"\n<ul class=\"wp-block-list\">\n\n\n\n\n\n<\/ul>\n","innerContent":["\n<ul class=\"wp-block-list\">",null,"\n\n",null,"\n\n",null,"\n\n",null,"<\/ul>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Ethereum\u2019s upgrade to Proof-of-Stake (PoS) is one example of the latter solution. While Proof-of-Work (PoW) requires miners to use substantial computing power, PoS only requires validators to put up enough financial collateral to secure the network.<\/p>\n","innerContent":["\n<p>Ethereum\u2019s upgrade to Proof-of-Stake (PoS) is one example of the latter solution. While Proof-of-Work (PoW) requires miners to use substantial computing power, PoS only requires validators to put up enough financial collateral to secure the network.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/heading","attrs":{"level":4},"innerBlocks":[],"innerHTML":"\n<h4 class=\"wp-block-heading\" id=\"h-layer-2-solutions\"><strong>Layer 2 solutions<\/strong><\/h4>\n","innerContent":["\n<h4 class=\"wp-block-heading\" id=\"h-layer-2-solutions\"><strong>Layer 2 solutions<\/strong><\/h4>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>A Layer 2 solution is a third-party tool that connects to a major blockchain and takes some of the load off. And after layer 2 is done processing, it sends the results back to the main chain. Examples of Layer 2 solutions include the Lightning Network for Bitcoin and Polygon (MATIC) for Ethereum.<\/p>\n","innerContent":["\n<p>A Layer 2 solution is a third-party tool that connects to a major blockchain and takes some of the load off. And after layer 2 is done processing, it sends the results back to the main chain. Examples of Layer 2 solutions include the Lightning Network for Bitcoin and Polygon (MATIC) for Ethereum.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>At the end of the day, layer 2 solutions allow major blockchains to have their cake (decentralization, security) and eat it too (scalability). Hell, projects like Ethereum and Cardano (ADA) combine both Layer 1 and 2 solutions to eke out every last drop of network performance.<\/p>\n","innerContent":["\n<p>At the end of the day, layer 2 solutions allow major blockchains to have their cake (decentralization, security) and eat it too (scalability). Hell, projects like Ethereum and Cardano (ADA) combine both Layer 1 and 2 solutions to eke out every last drop of network performance.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/heading","attrs":{"level":3},"innerBlocks":[],"innerHTML":"\n<h3 class=\"wp-block-heading\" id=\"h-how-top-crypto-projects-are-solving-the-blockchain-trilemma\">How top crypto projects are solving the Blockchain Trilemma<\/h3>\n","innerContent":["\n<h3 class=\"wp-block-heading\" id=\"h-how-top-crypto-projects-are-solving-the-blockchain-trilemma\">How top crypto projects are solving the Blockchain Trilemma<\/h3>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Measuring how well each project solves the blockchain trilemma is a hard task. Even more so when comparing networks with different consensus mechanisms or definitions of what constitutes a transaction.<\/p>\n","innerContent":["\n<p>Measuring how well each project solves the blockchain trilemma is a hard task. Even more so when comparing networks with different consensus mechanisms or definitions of what constitutes a transaction.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>But trying to measure this is still necessary in order to know if a project has true staying power. And to make this more of an apples-to-apples comparison, we\u2019ll only focus on Proof-of-Stake (PoS) smart contract platforms.<\/p>\n","innerContent":["\n<p>But trying to measure this is still necessary in order to know if a project has true staying power. And to make this more of an apples-to-apples comparison, we\u2019ll only focus on Proof-of-Stake (PoS) smart contract platforms.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/heading","attrs":{"level":4},"innerBlocks":[],"innerHTML":"\n<h4 class=\"wp-block-heading\" id=\"h-decentralization-amp-security\"><strong>Decentralization &amp; Security<\/strong><\/h4>\n","innerContent":["\n<h4 class=\"wp-block-heading\" id=\"h-decentralization-amp-security\"><strong>Decentralization &amp; Security<\/strong><\/h4>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>These two pillars of the Blockchain Trilemma can be measured by variables like:<\/p>\n","innerContent":["\n<p>These two pillars of the Blockchain Trilemma can be measured by variables like:<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/list","attrs":[],"innerBlocks":[{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>The total value staked in the network<\/li>\n","innerContent":["\n<li>The total value staked in the network<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>The percentage of the total coin supply that\u2019s staked<\/li>\n","innerContent":["\n<li>The percentage of the total coin supply that\u2019s staked<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>The requirements to become a validator\u2014the lower the better<\/li>\n","innerContent":["\n<li>The requirements to become a validator\u2014the lower the better<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>The total number of validators<\/li>\n","innerContent":["\n<li>The total number of validators<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>Whether there\u2019s a saturation limit for staking, which incentivizes users to stake to smaller pools<\/li>\n","innerContent":["\n<li>Whether there\u2019s a saturation limit for staking, which incentivizes users to stake to smaller pools<\/li>\n"]}],"innerHTML":"\n<ul class=\"wp-block-list\">\n\n\n\n\n\n\n\n<\/ul>\n","innerContent":["\n<ul class=\"wp-block-list\">",null,"\n\n",null,"\n\n",null,"\n\n",null,"\n\n",null,"<\/ul>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/table","attrs":[],"innerBlocks":[],"innerHTML":"\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><\/td><td>Ethereum (ETH)<\/td><td>Solana (SOL)<\/td><td>Cardano (ADA)<\/td><td>Terra (LUNA)<\/td><td>Avalanche (AVAX)<\/td><\/tr><tr><td><strong>Total Stake<\/strong><\/td><td>$33.9B<\/td><td>$40B<\/td><td>$24.12B<\/td><td>$27B<\/td><td>$21B<\/td><\/tr><tr><td><strong>Participation Rate<\/strong><\/td><td>9.12%<\/td><td>74.71%<\/td><td>71.92%<\/td><td>42.39%<\/td><td>67.63%<\/td><\/tr><tr><td><strong>Validator Count<\/strong><\/td><td>335K<\/td><td>1,789<\/td><td>3,215<\/td><td>130<\/td><td>1,438<\/td><\/tr><tr><td><strong>Validator Requirements<\/strong><\/td><td>High<\/td><td>High<\/td><td>Low<\/td><td>Medium<\/td><td>Low<\/td><\/tr><tr><td><strong>Saturation Limit<\/strong><\/td><td>No<\/td><td>No<\/td><td>Yes<\/td><td>No<\/td><td>No<\/td><\/tr><\/tbody><\/table><\/figure>\n","innerContent":["\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><\/td><td>Ethereum (ETH)<\/td><td>Solana (SOL)<\/td><td>Cardano (ADA)<\/td><td>Terra (LUNA)<\/td><td>Avalanche (AVAX)<\/td><\/tr><tr><td><strong>Total Stake<\/strong><\/td><td>$33.9B<\/td><td>$40B<\/td><td>$24.12B<\/td><td>$27B<\/td><td>$21B<\/td><\/tr><tr><td><strong>Participation Rate<\/strong><\/td><td>9.12%<\/td><td>74.71%<\/td><td>71.92%<\/td><td>42.39%<\/td><td>67.63%<\/td><\/tr><tr><td><strong>Validator Count<\/strong><\/td><td>335K<\/td><td>1,789<\/td><td>3,215<\/td><td>130<\/td><td>1,438<\/td><\/tr><tr><td><strong>Validator Requirements<\/strong><\/td><td>High<\/td><td>High<\/td><td>Low<\/td><td>Medium<\/td><td>Low<\/td><\/tr><tr><td><strong>Saturation Limit<\/strong><\/td><td>No<\/td><td>No<\/td><td>Yes<\/td><td>No<\/td><td>No<\/td><\/tr><\/tbody><\/table><\/figure>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/heading","attrs":{"level":4},"innerBlocks":[],"innerHTML":"\n<h4 class=\"wp-block-heading\" id=\"h-scalability-0\"><strong>Scalability<\/strong><\/h4>\n","innerContent":["\n<h4 class=\"wp-block-heading\" id=\"h-scalability-0\"><strong>Scalability<\/strong><\/h4>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>The key variables that determine blockchain scalability are:<\/p>\n","innerContent":["\n<p>The key variables that determine blockchain scalability are:<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/list","attrs":[],"innerBlocks":[{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li><strong>Block size:<\/strong> A block is a bundle of transactions, with size limiting how many transactions can be processed in one epoch.<\/li>\n","innerContent":["\n<li><strong>Block size:<\/strong> A block is a bundle of transactions, with size limiting how many transactions can be processed in one epoch.<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li><strong>Block time:<\/strong> How long it takes validators to verify transactions within one block.<\/li>\n","innerContent":["\n<li><strong>Block time:<\/strong> How long it takes validators to verify transactions within one block.<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li><strong>TPS:<\/strong> The number of transactions that a blockchain can handle per second. In the below table, I don\u2019t consider a blockchain\u2019s theoretical TPS, only the current one.<\/li>\n","innerContent":["\n<li><strong>TPS:<\/strong> The number of transactions that a blockchain can handle per second. In the below table, I don\u2019t consider a blockchain\u2019s theoretical TPS, only the current one.<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li><strong>Transaction cost:<\/strong> A fee that\u2019s charged to process transactions. Higher fees make a blockchain less usable (but ironically more secure).<\/li>\n","innerContent":["\n<li><strong>Transaction cost:<\/strong> A fee that\u2019s charged to process transactions. Higher fees make a blockchain less usable (but ironically more secure).<\/li>\n"]}],"innerHTML":"\n<ul class=\"wp-block-list\">\n\n\n\n\n\n<\/ul>\n","innerContent":["\n<ul class=\"wp-block-list\">",null,"\n\n",null,"\n\n",null,"\n\n",null,"<\/ul>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/table","attrs":[],"innerBlocks":[],"innerHTML":"\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><\/td><td>Ethereum (ETH)<\/td><td>Solana (SOL)<\/td><td>Cardano (ADA)<\/td><td>Terra (LUNA)<\/td><td>Avalanche (AVAX)<\/td><\/tr><tr><td><strong>Block size<\/strong><\/td><td>Around 1 MB<\/td><td>10 MB<\/td><td>80 KB<\/td><td>N\/A<\/td><td>N\/A<\/td><\/tr><tr><td><strong>Block time<\/strong><\/td><td>12-14s<\/td><td>400 ms<\/td><td>20s<\/td><td>6-8s<\/td><td>0.80s<\/td><\/tr><tr><td><strong>TPS<\/strong><\/td><td>11.67<\/td><td>1,212<\/td><td>250<\/td><td>1,000 (according to the founder)<\/td><td>10.12<\/td><\/tr><tr><td><strong>Average fee<\/strong><\/td><td>$49.65<\/td><td>$0.00025<\/td><td>$0.47<\/td><td>0.6% of every tx<\/td><td>~ 80 nAVAX<\/td><\/tr><\/tbody><\/table><\/figure>\n","innerContent":["\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><\/td><td>Ethereum (ETH)<\/td><td>Solana (SOL)<\/td><td>Cardano (ADA)<\/td><td>Terra (LUNA)<\/td><td>Avalanche (AVAX)<\/td><\/tr><tr><td><strong>Block size<\/strong><\/td><td>Around 1 MB<\/td><td>10 MB<\/td><td>80 KB<\/td><td>N\/A<\/td><td>N\/A<\/td><\/tr><tr><td><strong>Block time<\/strong><\/td><td>12-14s<\/td><td>400 ms<\/td><td>20s<\/td><td>6-8s<\/td><td>0.80s<\/td><\/tr><tr><td><strong>TPS<\/strong><\/td><td>11.67<\/td><td>1,212<\/td><td>250<\/td><td>1,000 (according to the founder)<\/td><td>10.12<\/td><\/tr><tr><td><strong>Average fee<\/strong><\/td><td>$49.65<\/td><td>$0.00025<\/td><td>$0.47<\/td><td>0.6% of every tx<\/td><td>~ 80 nAVAX<\/td><\/tr><\/tbody><\/table><\/figure>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Welp, that\u2019s a wrap. In addition to giving you some tools to compare blockchain projects, here are a few takeaways and disclaimers:<\/p>\n","innerContent":["\n<p>Welp, that\u2019s a wrap. In addition to giving you some tools to compare blockchain projects, here are a few takeaways and disclaimers:<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/list","attrs":[],"innerBlocks":[{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>Decentralization, security, and scalability exist on a spectrum, and none of the major blockchains are entirely good or bad.<\/li>\n","innerContent":["\n<li>Decentralization, security, and scalability exist on a spectrum, and none of the major blockchains are entirely good or bad.<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>Each component of the blockchain trilemma is affected by an array of variables, and we can\u2019t measure every single one.<\/li>\n","innerContent":["\n<li>Each component of the blockchain trilemma is affected by an array of variables, and we can\u2019t measure every single one.<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>Reliable data isn\u2019t always available, so I relied on metrics that can be verified for the most part.<\/li>\n","innerContent":["\n<li>Reliable data isn\u2019t always available, so I relied on metrics that can be verified for the most part.<\/li>\n"]},{"blockName":"core\/list-item","attrs":[],"innerBlocks":[],"innerHTML":"\n<li>Choosing a different set of metrics from the ones listed above can paint an entirely new picture of each blockchain\u2019s competitiveness.<\/li>\n","innerContent":["\n<li>Choosing a different set of metrics from the ones listed above can paint an entirely new picture of each blockchain\u2019s competitiveness.<\/li>\n"]}],"innerHTML":"\n<ul class=\"wp-block-list\">\n\n\n\n\n\n<\/ul>\n","innerContent":["\n<ul class=\"wp-block-list\">",null,"\n\n",null,"\n\n",null,"\n\n",null,"<\/ul>\n"]}],"_links":{"self":[{"href":"https:\/\/moneymade.io\/learn\/wp-json\/wp\/v2\/posts\/861","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/moneymade.io\/learn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/moneymade.io\/learn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/moneymade.io\/learn\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/moneymade.io\/learn\/wp-json\/wp\/v2\/comments?post=861"}],"version-history":[{"count":0,"href":"https:\/\/moneymade.io\/learn\/wp-json\/wp\/v2\/posts\/861\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/moneymade.io\/learn\/wp-json\/wp\/v2\/media\/871"}],"wp:attachment":[{"href":"https:\/\/moneymade.io\/learn\/wp-json\/wp\/v2\/media?parent=861"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/moneymade.io\/learn\/wp-json\/wp\/v2\/categories?post=861"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/moneymade.io\/learn\/wp-json\/wp\/v2\/tags?post=861"},{"taxonomy":"post_authors","embeddable":true,"href":"https:\/\/moneymade.io\/learn\/wp-json\/wp\/v2\/post_authors?post=861"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}