It has been more than a decade since the first cryptocurrency, Bitcoin came into existence. As it continued its struggle to gain wide-spread adoption, people soon realized the importance of the cryptocurrency’s underlying technology which could be used for a variety of applications, opening doors to decentralized applications (DApps) and now Decentralized Finance (DeFi). Now we have numerous blockchain protocols with different features that are suitable for various applications.
While the crypto ecosystem continues to grow, the real-world adoption rate still leaves a lot to be desired. One of the reasons for such low adoption is the inability of leading blockchain protocols to handle huge transaction volumes. In fact, the popular blockchains – Bitcoin and Ethereum can only handle up to 10 transactions per second. In order to encourage widespread adoption of cryptocurrencies and blockchain solutions, there is a need to solve what’s known as the “blockchain scalability trilemma”.
The three main desirable characteristics of a blockchain network are