Definition ∞ Fundamental limits refer to the theoretical boundaries or inherent constraints that restrict the performance, scalability, or security of a system or technology. In the context of blockchain and digital assets, these limits might pertain to factors like transaction throughput, latency, storage capacity, or cryptographic security under specific computational models. They represent the irreducible physical or mathematical restrictions that cannot be overcome by mere engineering improvements. Understanding these limits guides the design and evolution of decentralized networks.
Context ∞ Discussions around fundamental limits frequently surface in debates about blockchain scalability solutions, such as sharding or layer-two protocols, and the trade-offs involved. A key area of concern involves the “blockchain trilemma,” which posits that a blockchain can only achieve two of three properties—decentralization, security, and scalability—simultaneously. Observing research into novel cryptographic primitives and consensus mechanisms that attempt to push these theoretical boundaries represents a critical future development.
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