2025-08-30
In the development process of blockchain technology, decentralization, completeness, and scalability are important goals it pursues. However, it is not easy to achieve these three goals simultaneously in reality, which is the famous "trilemma" in the blockchain field. How does this dilemma affect the development of blockchain? What are the current solutions? How does it reflect in practical applications?
The blockchain trilemma refers to the inability to simultaneously consider the three core characteristics of decentralization, security, and scalability in the design of a blockchain system. Decentralization means that there is no single control center, and many nodes jointly maintain the network; security requires the system to be able to resist malicious attacks and ensure the integrity and immutability of data; scalability is related to the speed and capacity of the system to process transactions to meet the needs of large-scale applications. When the degree of decentralization is increased, the number of nodes increases, the time to reach consensus becomes longer, and the scalability decreases; if you pursue higher scalability, you often need to sacrifice some decentralization or security. For example, the Bitcoin network is known for its high degree of decentralization and security, but its transaction processing speed is slow, only a few transactions per second can be processed, and its scalability is limited.
In order to break through the trilemma, developers have made many attempts. Sharding technology divides the blockchain network into multiple sub-networks (sharding), each sharding handles transactions independently, thereby improving the overall processing speed and enhancing scalability to a certain extent; Sidechains run in parallel with the main chain , sharing the transaction pressure of the main chain. In addition, Improving the consensus mechanism is also an important direction, For example, from proof of work (PoW) to proof of stake (PoS), it can reduce computing power consumption and improve transaction efficiency, but it will also affect the degree of decentralization to a certain extent. When building a digital asset trading platform, HashKey Exchange will also comprehensively consider different solutions, balance the relationship between the three, and provide users with safe and efficient services.
In practical applications, the blockchain trilemma is particularly obvious. In the field of decentralized finance (DeFi), in order to ensure the security and decentralization of transactions, the transaction confirmation time may be long, making it difficult to meet the needs of high-frequency trading; while some alliance chains or private chains that pursue high scalability have deviated from the original intention of blockchain decentralization due to limited node participation. HashKey Exchange According to different business scenarios and user requests, dynamically adjust between security, decentralization and scalability. At the same time, the industry is also continuing to explore, such as integrating the advantages of different blockchains through cross-chain technology, gradually alleviating the trilemma and promoting the development of blockchain technology to a more mature direction.
What is HashKey Exchange?
HashKey Exchange is one of the first regulated cryptocurrency exchanges in Hong Kong to obtain a license from the Securities and Futures Commission (SFC). It supports fiat currency deposits and trading in Hong Kong dollars (HKD) and US dollars (USD), offering users spot trading services for mainstream digital assets including Bitcoin (BTC), Ethereum (ETH), and Tether (USDT). The platform also provides OTC (over-the-counter) services to meet the needs of large-value asset transactions and fiat currency conversion, ensuring more flexible and private trading. To cater to the asset allocation needs of different investors, HashKey has launched the HashKey Earn channel, offering users fixed-term and demand financial products to achieve stable appreciation of crypto assets. The platform holds ISO 27001 and 27701 security certifications, employs a 98% cold wallet storage mechanism, and incorporates security measures such as two-factor authentication to provide users with a stable and reliable trading environment.
Download link: https://www.hashkey.com/en-US/download
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