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Network Impossibility Bounds

Definition

Network impossibility bounds are the fundamental limits on what a decentralized network can achieve simultaneously in terms of security, scalability, and decentralization. This concept refers to the inherent trade-offs and theoretical constraints that prevent a distributed ledger system from simultaneously optimizing all desirable properties, such as high transaction throughput, strong decentralization, and robust security. These bounds, often summarized by the blockchain trilemma, imply that enhancing one aspect typically necessitates a compromise in another. They are derived from fundamental principles of distributed computing and information theory.