Scalability Trilemma

Definition ∞ The Scalability Trilemma posits that a blockchain system can only achieve two of three desirable properties at any given time: decentralization, security, and scalability. Increasing one often necessitates a compromise on another. For instance, prioritizing high transaction throughput might reduce the number of validating nodes, affecting decentralization. This fundamental challenge shapes the design and development of all blockchain protocols.
Context ∞ The state of the Scalability Trilemma is a central challenge continually addressed by blockchain developers and researchers. Key discussions involve innovative approaches to overcome these inherent limitations, such as layer-2 solutions or sharding techniques. A critical future development involves advancements that allow protocols to approach a more balanced achievement of all three properties, enhancing the utility of decentralized networks.