Bankless Academy - Content Creation Process
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<aside> 💡 References https://dealroom.co/blog/rollup-rollup-scaling-blockchain-to-one-billion-users
Cliffton’s L2: https://docs.google.com/document/d/1ZnePH3iZ2maScO6XyuccjXghMXKvs72zmur5cSINKo0/edit#heading=h.go67i0lf03bv
Problems emerge when more users want to use a blockchain network than it can handle. Large demand for
blockspace can be temporary or can last as long as users continue to have a strong desire to use the blockchain. In order to still have their transactions processed quickly, Ethereum users can pay skyrocketing fees in times of high demand — pricing out users with less capital and opening opportunities for other blockchains.
This lesson explores why Ethereum and other blockchains are subject to the
Blockchain Trilemma, how the Trilemma is the root cause of the problems described above, and how the Trilemma affects Ethereum’s plans for serving the needs of all their users. We will look at the tradeoffs several blockchains have made with respect to the Blockchain Trilemma, and what those tradeoffs mean for Academy Explorers.
As implied by the word trilemma, there are three qualities of blockchains that compete with each other and prevent optimizing for all three at once.
In order for a blockchain to serve as an unbiased foundation for a monetary system at a global scale, it must have a high amount of all three aspects. A monetary system needs to be secure from fraud, safe from attacks by censors through decentralization, and scalable to meet the needs of over 7 billion humans in a global society.
Security is the most foundational requirement for a public blockchain. Computers within a network (such as a blockchain network) all must agree on what transactions have truly happened in order to work together, this agreement is called
consensus. A blockchain is secure if attackers cannot disrupt the network from agreeing on that truth in practice. Consensus algorithms are designed to prevent attacks through different methods.
Chains like Bitcoin that use
Proof of Work consensus prevent fraud by making their consensus algorithm highly competitive; each block producer is racing to solve a math problem and the first to do so wins the right to create the next block and the monetary
block reward that comes with it. Fraud would require massive investments in computing power and energy, an attacker would likely spend more than they’d gain.