The Limits to Blockchain? Scaling vs. Decentralization
Discussion Paper Series: Notes on the 21st Century (CBRI)
8 Pages Posted: 12 Mar 2019
Date Written: February 20, 2019
This discussion paper examines a possible limitation to the advancement of blockchain: the intrinsic tradeoff between scaling to a larger size, and the need to maintain a decentralized and distributed architecture. The scaling vs. decentralization trade-off, the paper argues, may impose a long-term limitation on the growth of blockchain-based technologies including cryptocurrencies.
Keywords: Blockchain, Bitcoin, Cryptocurrency, IOTA, Distributed Ledger
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