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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 Layer 2 solutions to support further scaling and expanded use of the network. Examples include the Lightning network for Bitcoin and sharding for Ethereum.

Further Reading the Scalability Trilemma

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