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Blockchain Trilemma
The blockchain trilemma refers to the challenge of achieving three key objectives in a blockchain network: decentralization, security, and scalability. Coined by Ethereum co-founder Vitalik Buterin, the concept suggests that a blockchain can only achieve two out of the three qualities at any given time without compromising the third. For example, Bitcoin is highly decentralized and secure, but it struggles with scalability issues, meaning it cannot handle a large number of transactions per second. On the other hand, some newer blockchains, like Binance Smart Chain, may sacrifice a degree of decentralization in order to achieve higher scalability and maintain security. Solving the blockchain trilemma is one of the main goals of third-generation blockchains, as they seek to improve scalability without sacrificing security or decentralization. Innovations like sharding, layer-2 solutions, and new consensus mechanisms are being developed to address this issue.
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