“Trilemma” of the Ethereum #blockchain, it is a term coined by Vitalik Buterin describing the issue with the performance and scaling of the blockchain.
Three fundamental characteristics of a public blockchain network are; decentralised, secure and scalable.
The equation between the three is such that if you fix one, the other gets impacted.
Decentralised and scalable blockchain will not necessarily be secure or even faster.
To make the chain decentralised, further nodes have to be added, getting scale, but reducing the speed because of consensus mechanism in “proof of work” model.
So it can be scaled but not necessarily be any faster.
#ethereum 2.0, with migration to “proof of stake” consensus model, where the strongest stakeholders validate the transaction, the security will be impacted.
It is said that with the migration to proof of stake consensus model, #ethereum network will support 10,000 transactions per second.
10,000 TPS is nothing in the payments realm !
There are other #blockchain networks that are coming up, and they will, but this seems to be inherent issues with all blockchains.
This will improve as research and technology in this space improves.
Until then, it makes you wonder, #ethereum and the #defi and #web3 ecosystem being built around it, is it ready for world domination ? Or will it remain a niche market ?