Part 1 · Chapter 6

Blockchain Trilemma & Design Trade-offs

At a Glance

The blockchain trilemma suggests you can optimize only two of decentralization, security, and scalability at once. You'll learn how different chains prioritize and what that means for users.

Trade-offsDesign ChoicesNetwork Comparison

Who Is This For?

  • Learners comparing chains like Ethereum, Solana, and Cosmos
  • Builders choosing infrastructure for their app

Learning Objectives

  1. 01Define each pillar of the trilemma
  2. 02Map real networks to their design choices
  3. 03Choose infrastructure that matches your risk and UX goals
Section 1

The Three Pillars

Every blockchain must balance three fundamental properties. Optimizing for one often means compromising another. Understanding these trade-offs is key to evaluating any network.

Pick 2
Decentralization
Security
Scalability
The “trilemma” suggests maximizing all three simultaneously is extremely difficult

Decentralization

Power distributed across many independent participants. No single entity controls the network.

  • • Many validators worldwide
  • • Low hardware requirements
  • • Censorship resistance
  • • No single point of failure

Security

Resistance to attacks and manipulation. Economic guarantees make cheating unprofitable.

  • • Attack costs exceed rewards
  • • Immutable transaction history
  • • Robust consensus mechanism
  • • Battle-tested over time

Scalability

Ability to handle many transactions quickly and cheaply as usage grows.

  • • High transactions per second
  • • Low latency confirmations
  • • Affordable fees at scale
  • • Good user experience

Try It: Adjust Priorities

Drag the sliders to set your priorities. Watch how increasing one forces others to decrease— that's the trilemma in action!

Decentralization
80%
Security
80%
Scalability
40%
Best matching network for your priorities:
Ξ
Ethereum
Rollup-centric roadmap
Section 2

Network Examples

Different chains make different bets on the trilemma. Let's compare how major networks position themselves.

Ξ

Ethereum

Maximum decentralization and security, uses L2s for scale

Validators/Nodes
~900,000 validators
Throughput
~15-30 TPS (L1)
Approach
Rollup-centric roadmap
Decentralization90%
Security95%
Scalability30%

Quick Comparison

ChainDecent.SecurityScaleTrade-off
Ξ Ethereum909530Rollup-centric roadmap
Solana507095Monolithic high-performance
Bitcoin9510015Security-first, Lightning for scale
Cosmos707580App-specific chains
Polygon PoS556585Sidechain + zkEVM development
🔺 Avalanche758075Subnets for app chains
Section 3

Application Alignment

Different applications have different needs. The right infrastructure depends on what you're building and what trade-offs are acceptable.

Use Case Explorer

Click a use case to see which priorities matter most and what infrastructure fits.

🏦
DeFi / Financial Apps
Prioritize: Security + Decentralization
🎮
Gaming / NFT Games
Prioritize: Scalability + Security
📱
Social / Content Apps
Prioritize: Scalability + Decentralization
🏛️
Institutional Settlement
Prioritize: Security + Scalability
🌍
Cross-border Payments
Prioritize: Decentralization + Security

Hybrid Approaches

Many projects use layered architectures to get the best of multiple worlds:

L1 + L2 Strategy

Use Ethereum L1 for high-value operations (treasury, staking) and L2s for frequent user interactions (trading, gaming).

App Chains

Build your own chain (Cosmos, Avalanche subnet) for full control over parameters, then bridge to larger ecosystems for liquidity.

Watch Out

Common Mistakes & Gotchas

These misconceptions about blockchain trade-offs lead to poor infrastructure choices.

🎯
One chain can maximize all three pillars
Every chain makes trade-offs. Claims of ‘solving the trilemma’ usually hide compromises.
📊
High TPS = better blockchain
TPS is just one metric. Latency, fees, decentralization, and reliability all matter for real UX.
🖥️
More validators = automatically more decentralized
Decentralization also depends on validator distribution, hardware requirements, and governance power.
🔄
Design trade-offs are permanent
Chains evolve through governance. Ethereum’s move to PoS and rollup-centric roadmap changed its profile.

Pro tip: When evaluating a chain, look at validator requirements (can a regular person run one?), geographic distribution, and who controls governance—not just headline TPS numbers.

Test Yourself

Knowledge Check

Let's see how well you understand the blockchain trilemma. Answer all 5 questions below.

1

What are the three pillars in the blockchain trilemma?

2

Which pillar do rollups primarily improve for Ethereum?

3

Why might a game choose an appchain?

4

Which chain prioritizes security and decentralization over scalability?

5

What’s a key consideration when evaluating a chain’s decentralization?

Next Steps

Continue learning: “What is Cryptocurrency?” — explore the money-layer basics and how tokens capture value
Hands-on practice: Compare validator counts and hardware requirements on StakingRewards for chains you use