Consensus Trilemma

Definition ∞ The consensus trilemma posits that a decentralized system can only simultaneously achieve two out of three desired properties decentralization, security, and scalability. This theoretical constraint highlights the inherent challenges in designing distributed ledger technologies. Developers must make deliberate choices about which two properties to prioritize in their blockchain architecture. It represents a fundamental limitation in distributed system engineering.
Context ∞ The consensus trilemma is a frequently discussed concept when analyzing the technical limitations of various cryptocurrencies. For instance, Bitcoin prioritizes decentralization and security, often at the expense of transaction speed. Efforts to overcome this trilemma involve layer-2 solutions and alternative consensus mechanisms. Future advancements in blockchain technology aim to mitigate these trade-offs, seeking more balanced solutions.