Blockchain technology has opened a new era for finance, data management, and countless other fields, from cryptocurrencies like Bitcoin to decentralized applications (dApps). However, behind this strong development is a major challenge that blockchain developers face: the Blockchain Trilemma.

This concept, proposed by Vitalik Buterin – the founder of Ethereum – emphasizes that a blockchain can hardly achieve all three core factors simultaneously: decentralization, security, and scalability. Instead, projects often can only optimize two out of three factors, leading to an unavoidable trade-off.

In this article, we will explore what the Blockchain Trilemma is, analyze real-world examples of leading blockchains with specific metrics to illustrate their trade-offs, and finally, learn why Altius – a rising blockchain infrastructure project – could be the "holy grail" to solve this puzzling problem.

What is Blockchain Trilemma?

Blockchain Trilemma is a concept that describes the difficulty of balancing three main attributes of a blockchain system:

  1. Decentralization: This is the degree to which the network is not controlled by a central entity. A highly decentralized blockchain has many nodes participating in the transaction validation process, ensuring that no one can easily manipulate the system.

  2. Security: This is the ability to resist attacks such as hacks, 51% attacks, or data manipulation. A well-secured blockchain will protect user data and transactions to the maximum.

  3. Scalability: This is the ability to process a large volume of transactions quickly and efficiently. A blockchain with good scalability can meet the needs of millions of users without congestion or increased transaction costs.

Accordingly, achieving all three of these factors simultaneously is a major challenge. When a blockchain tries to improve one aspect, it often has to sacrifice another. To understand better, we will look at specific examples in the next section.

Blockchain and the Trade-off

Below is a detailed analysis of some major blockchains so that everyone knows they face trade-offs in this impossible triangle.

Bitcoin

  • Decentralization: Bitcoin is the gold standard for decentralization. With over 15,000 nodes globally (according to Bitnodes, as of 2023), no single entity can easily control the network.

  • Security: Bitcoin's Proof of Work (PoW) consensus mechanism is extremely secure due to its massive hashrate – around 300 EH/s (exahashes per second, according to Blockchain.com, 2023). To attack the network, an attacker needs to control over 50% of the hashrate, which is nearly impossible given current costs.

  • Scalability: This is Bitcoin's major weakness. The network can only process 7 transactions per second (TPS), which is significantly lower than traditional financial systems like Visa (approximately 24,000 TPS). The 1MB block size and an average block creation time of 10 minutes are the main reasons.

Trade-off: Bitcoin prioritizes decentralization and security but sacrifices scalability.

Ethereum

  • Decentralization: Ethereum also has a high degree of decentralization, with approximately 8,000 nodes (according to Etherscan, 2023). However, it is less decentralized than Bitcoin due to higher hardware requirements to run full nodes.

  • Security: Ethereum used PoW before transitioning to Proof of Stake (PoS) with the Ethereum 2.0 update (2022). However, Ethereum's security is not perfect – smart contracts have been exploited, such as the DAO hack in 2016, which resulted in a loss of 3.6 million ETH (approximately 50 million USD at that time).

  • Scalability: Before Ethereum 2.0, the network only achieved 15-30 TPS. After implementing PoS and layer 2 solutions (such as Optimism or Arbitrum), this number increased to hundreds of TPS, but it is still not enough to compete with centralized systems.

Trade-off: Ethereum attempts to balance decentralization and scalability, but security is sometimes compromised due to the complexity of smart contracts.

Solana

  • Decentralization: Solana has a lower degree of decentralization, with only about 2,000 validators (according to Solana Beach, 2023). High hardware requirements (powerful computers, large bandwidth) make it harder to participate in the network, leading to some centralization.

  • Security: Solana uses Proof of History (PoH) combined with PoS, providing good security. However, the network has experienced disruptions, such as a 17-hour outage in September 2021 due to a technical error.

  • Scalability: Solana is a star in scalability, achieving 65,000 TPS under ideal conditions (according to the Solana whitepaper), far surpassing Bitcoin and Ethereum.

Trade-off: Solana prioritizes scalability and security but sacrifices decentralization.

Binance Smart Chain (BSC)

  • Decentralization: BSC has only 21 validators (according to BscScan), all chosen by Binance, making it more similar to a centralized system rather than a decentralized one.

  • Security: With the Proof of Staked Authority (PoSA) mechanism, BSC has good security under normal conditions but is vulnerable to attacks if Binance is compromised.

  • Scalability: BSC handles 100-200 TPS, higher than the original Ethereum but lower than Solana.

Trade-off: BSC focuses on scalability and security but almost ignores decentralization.

From the above examples, it is clear that no current blockchain achieves all three corners of the Blockchain Trilemma. So, is there a solution that breaks this limit?

Altius: The Holy Grail of Web3

According to Altius' whitepaper, the project is not aimed at building a new blockchain to compete with Layer 1s like Ethereum, Solana, or Aptos. Instead, Altius provides a framework for execution that does not depend on virtual machines, functioning as an intermediary layer to help blockchains optimize performance, increase interoperability, and maintain both security and decentralization.

Altius' solution can be likened to a "supercharger" for blockchain, delivering Web3 performance on par with Web2 without requiring chains to change their core. Below is how Altius addresses each factor of the trilemma, based on proprietary technologies and designs described in the whitepaper:

1. Scalability – Increasing blockchain speed without sacrificing security

One of Altius' greatest strengths is its ability to improve transaction throughput (TPS) and reduce gas costs without requiring blockchains to change their fundamental structure. This is achieved through:

  • Parallel Execution:
    Altius uses an advanced parallel execution model, combining Deterministic Optimistic Concurrency Control (OCC) and Static Single Assignment (SSA). OCC allows multiple transactions to be processed simultaneously without conflicts, while SSA optimizes data dependency analysis, ensuring efficient transaction execution. The whitepaper indicates that this model helps increase transactions per second by 30x and reduce gas costs by 75%, making it particularly suitable for applications like DeFi, NFTs, and blockchain games that require high TPS and low latency.

  • Open Execution Network:
    Altius designs an open execution network, where nodes from any blockchain can participate in transaction processing without permission. This is different from Layer 2 solutions like rollups, which often require specialized hardware or fixed validators. Altius' open network distributes the execution workload across multiple nodes, increasing scalability without compromising decentralization.

  • Database Optimization:
    Altius has made significant improvements in optimizing blockchain database performance, for example with reth (Rust Ethereum). The whitepaper mentions that Altius has identified bottlenecks in I/O (input/output) of reth and improved storage performance, reducing processing times and increasing throughput. These optimizations apply not only to Ethereum but also to other blockchains integrating with Altius.

Thanks to these improvements, Altius enables blockchains to achieve Web2 equivalent performance (tens of thousands of TPS with millisecond latency) without needing to build a new chain from scratch. This is particularly important in the Web3 context, where applications such as blockchain games or decentralized finance (DeFi) markets require speed and low costs to compete with centralized platforms.

2. Security – Speeding up does not mean risk

One of the biggest concerns when increasing scalability is the risk of affecting security. Altius addresses this issue through several smart mechanisms:

  • Dual Staking Mechanism:
    In Altius' open execution network, participating nodes must stake both Altius tokens and the tokens of the target chain (e.g., ETH for Ethereum, SOL for Solana). This mechanism ensures that nodes have the economic incentive to behave honestly, as they will be penalized if they deliberately manipulate transactions. The whitepaper emphasizes that the dual staking mechanism helps maintain the security of the native chain while still allowing Altius to increase performance.

  • Deterministic OCC:
    Altius' OCC model not only increases speed but also ensures determinism in transaction execution. This means that the results of transactions are always consistent across all nodes, reducing the risk of errors or attacks such as double spending.

  • Separation of Execution Layer:
    By separating the execution layer from the consensus layer and the data availability layer, Altius minimizes risks for the native chain. Blockchains integrating with Altius still maintain their own consensus and security mechanisms, while Altius only optimizes transaction execution. This ensures that the security of the native chain is not compromised.

Thanks to these mechanisms, Altius allows blockchains to accelerate without sacrificing security – a significant advancement compared to other solutions that often trade off security to achieve scalability.

3. Decentralization – An open network for all

Decentralization is a core element of blockchain philosophy, but many current scaling solutions compromise decentralization. For example, rollups often rely on a small group of validators, or high-performance blockchains like Solana require robust hardware, making it difficult for average users to run a node. Altius addresses this issue by:

  • Permissionless Execution Network:
    Anyone can participate in Altius' execution network by staking tokens, without needing expensive specialized hardware. This ensures that the network remains decentralized, with many nodes participating from around the world.

  • Compatible with all blockchains:
    Altius is designed to work with any blockchain, from Ethereum to Solana, Aptos, or even application-specific chains. This helps reduce liquidity fragmentation and encourages participation from various blockchain communities, enhancing decentralization across the ecosystem.

  • Modular Architecture:
    Altius' whitepaper emphasizes a three-module architecture (execution, consensus, data storage), allowing blockchains to customize how they integrate with Altius without losing autonomy. For example, a chain can use Altius only for transaction execution while maintaining its own consensus and data storage layer. This helps blockchains maintain decentralization as they are not completely dependent on Altius.

By creating an open execution network, multi-chain compatible, and not requiring specialized hardware, Altius ensures that blockchains integrating with it maintain their decentralization – the final factor of the trilemma.

Altius – The Unsung Hero of Web3

The Blockchain Trilemma has long been the biggest barrier to the development of Web3. While many projects try to solve this problem by creating new blockchains, Altius chooses a different path: helping existing blockchains become better. With an execution framework that does not rely on virtual machines, parallel execution, an open execution network, and a modular architecture, Altius not only addresses the trilemma but also opens up a future where Web3 can directly compete with Web2 in terms of speed, cost, and user experience.

As stated in Altius' whitepaper, the project is not aiming to replace blockchains but to elevate them, helping them achieve a balance between security, scalability, and decentralization. In a multi-chain world, Altius is not just a technical solution – it is a bridge that brings Web3 closer to the dream of a decentralized, efficient, and accessible internet for everyone.

If you want to learn more about Altius, visit https://www.altiuslabs.xyz/, read the whitepaper, or join the community via Discord and Telegram. Altius is not just a project – it is the future of blockchain.
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