Blockchain — Decentralisation Blockchain technology has been gaining significant momentum in recent years due to its ability to provide trust, security, transparency, and traceability to data shared across a network. Decentralisation is one of the core principles of blockchain technology and is what sets it apart from traditional database systems. In this article, we will be exploring the concept of decentralisation in blockchain technology and its significance within the context of the blockchain trilemma.
The blockchain trilemma states that a blockchain can only have two out of three properties; scalability, decentralisation, and security. Decentralisation refers to the distribution of the ledger across multiple nodes, meaning that no single entity controls the system. This property is what makes blockchain technology so secure, as there is no central point of attack for malicious actors.
One of the main advantages of decentralised systems is that they are less vulnerable to attacks, as there is no central point of control. This property makes blockchain technology an attractive option for businesses looking to secure their data. Another advantage of decentralisation is that it increases transparency and traceability, as all participants on the network have a copy of the ledger, which can be easily audited.
However, decentralisation comes at a cost. Decentralised systems are typically slower and more expensive than centralized systems, as there are more nodes to communicate with. This is where the blockchain trilemma comes into play, as a blockchain must trade off decentralisation for scalability or security. For example, the Bitcoin blockchain is extremely decentralised and secure, but the trade-off is scalability, as transactions can take up to 15 minutes to confirm.
In recent years, the blockchain trilemma has become less pronounced, with many blockchains now offering scalable and secure solutions while still maintaining decentralisation. Some blockchains can even handle twice as many transactions per second as Visa, while being both secure and decentralised. This demonstrates that the trade-off between decentralisation and scalability is no longer a binary choice.
In conclusion, decentralisation is a fundamental property of blockchain technology that provides trust, security, transparency, and traceability to data shared across a network. Decentralisation comes at a cost, but this cost is becoming less pronounced with the advancement of blockchain technology. Businesses that are considering a switch to a blockchain solution should consider the trade-off between decentralisation, scalability, and security, and choose a solution that best fits their needs.
