Introduction
In the ever-evolving world of blockchain technology, a new trilemma has emerged, challenging developers and theorists alike. This analysis delves into the intricate balance between single-chain design, block-based updates, and scalability in blockchain networks. Based on insights from multiple sources, we’ll explore the core components of this trilemma and its implications for the future of cryptocurrency and decentralized systems.
Table of Contents
- Defining the Trilemma
- Core Workloads of Permissionless Networks
- Sides of the Trilemma
- Potential Solutions and Innovations
- Challenges and Limitations
- Key Takeaways
- Conclusion
Defining the Trilemma
The new blockchain trilemma focuses on three key aspects:
- Single chain (no sharding)
- Block-based updates
- Scalability
To understand this trilemma, we need to clearly define each component. Let’s break it down based on the information provided by blockchain expert @spjoleh:
Sharding
Sharding involves splitting the validator set into subsets, each maintaining a portion of the state. These subsets reach consensus in parallel, with a coordination protocol maintaining connectivity across shards.
Blocks
In this context, blocks refer to the method by which state is updated. Validators agree on a single block, which is then appended to an existing list of blocks, corresponding to the state itself.
Scalability
Scalability here means the ability of a protocol to scale to arbitrary usage, independent of individual machine capacity. This involves distributing workloads across different machines, either through sharding or “intra-node sharding.”
Core Workloads of Permissionless Networks
To fully grasp the trilemma, we must understand the core workloads of permissionless networks. @spjoleh identifies three primary components:
- Execution
- State I/O
- Consensus
These workloads form the foundation of blockchain operations and are crucial when considering scalability solutions.
Sides of the Trilemma
No Sharding-Blocks
This side of the trilemma is satisfied by any non-sharded blockchain. Traditional blockchains like Bitcoin and Ethereum (pre-2.0) fall into this category.
Blocks-Scalability
Sharding allows for scalability with blocks. As new sets of validators are added, each core workload can be scaled proportionately. However, the coordination protocol between shards may eventually become a bottleneck.
Scalability-No Sharding
This is where innovative solutions come into play. According to @spjoleh, the Delta Network achieves this through its domain-centric state model:
@deltadotnetwork achieves this due to the domain-centric state model. Here execution scales horizontally like rollups (note: this shards execution; we think of sharding in terms of state, as is standard for blockchains as well as general dbs).
This approach allows for parallel execution, I/O scaling with domains, and consensus scaling without traditional sharding.
Potential Solutions and Innovations
MonadDb: Parallelizing I/O
One promising development in addressing the I/O aspect of the trilemma comes from the Monad project:
@monad_xyz’s MonadDb parallelizes reads and writes within the same SSD, which suggests this possibility.
This innovation hints at the potential for I/O scalability even in the presence of blocks, potentially alleviating one aspect of the trilemma.
Challenges and Limitations
Despite these innovations, significant challenges remain, particularly in the realm of consensus. @spjoleh notes:
The issue is consensus. Validators agreeing on a block is an inherently sequential operation which cannot be parallelized. It is pointless to establish new network channels to send transactions around in parallel when they all ultimately have to be squeezed through the same one to form a block.
This limitation suggests that the trilemma may be fundamentally unsolvable in its current form, at least with our current understanding of blockchain technology.
Key Takeaways
- A new blockchain trilemma has emerged, focusing on single-chain design, block-based updates, and scalability.
- Core workloads of permissionless networks include execution, state I/O, and consensus.
- Innovative solutions like Delta Network’s domain-centric model offer new approaches to scalability without traditional sharding.
- I/O scalability shows promise with developments like MonadDb.
- Consensus remains a significant bottleneck, potentially rendering the trilemma unsolvable with current technology.
Conclusion
The blockchain scalability trilemma presents a complex challenge for the cryptocurrency industry. While innovations in execution and I/O show promise, the consensus bottleneck remains a significant hurdle. As the industry continues to evolve, we may see new paradigms emerge that challenge our current understanding of blockchain architecture. What do you think will be the next big breakthrough in solving this trilemma?
