The Scalability Trilemma describes the challenge of achieving three key properties in a blockchain system: scalability, security, and decentralization. The idea is that improving one of these aspects often compromises the others.Scalability refers to the system’s ability to handle a growing amount of transactions efficiently. High scalability means the network can process many transactions quickly, accommodating a larger user base.Security ensures that the network is resistant to attacks and fraudulent activities. A secure system protects users’ assets and maintains trust.Decentralization distributes control among multiple participants rather than concentrating it in a single entity. This fosters fairness and reduces the risk of corruption or manipulation.In practice, when a blockchain focuses on enhancing scalability, it may become less secure or decentralized. Conversely, prioritizing security and decentralization might limit transaction speed and overall capacity. This trade-off presents a fundamental challenge for developers, who strive to create systems that balance these three properties effectively.
Avalanche Treasury Co. to Go Public in $675M Deal With Mountain Lake Acquisition
Avalanche Treasury Co. (AVAT), a digital asset treasury company aligned with the Avalanche Foundation, said Wednesday it has agreed to