Scalability Trilemma
The Scalability Trilemma refers to the trade-offs a blockchain designed for every node to validate every transaction must make in order to operate.
At most, it can optimize for two of the following three properties:
Historically, prominent blockchain projects like Bitcoin and Ethereum have focused on supporting decentralization and providing robust security. Leading to challenges with scaling.
Resulting in what are often referred to as Layer 2 proposals to support further scaling and expanded use of the network. Examples include the Lightning network for Bitcoin and Sharding for Ethereum.
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Steve Miller
Founder at Crypto Jungle
Steve is a CFA® Charterholder and founder of Crypto Jungle. A site devoted to helping people hack through the weeds to find the Crypto gems.
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The CFA designation is globally recognized and attests to a charterholder’s success in a rigorous and comprehensive study program in the field of investment management and research analysis.
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Stay up to date on his research by subscribing to his newsletter.
The CFA designation is globally recognized and attests to a charterholder’s success in a rigorous and comprehensive study program in the field of investment management and research analysis.
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.