The Curses of Blockchain Decentralization [article]

Shumo Chu, Sophia Wang
2018 arXiv   pre-print
Decentralization, which has backed the hyper growth of many blockchains, comes at the cost of scalability. To understand this fundamental limitation, this paper proposes a quantitative measure of blockchain decentralization, and discusses its implications to various trust models and consensus algorithms. Further, we identify the major challenges in blockchain decentralization. Our key findings are that true decentralization is hard to achieve due to the skewed mining power and that a fully
more » ... tralized blockchain inherently limits scalability as it incurs a throughput upper bound and prevents scaling smart contract execution. To address these challenges, we outline three research directions to explore the trade-offs between decentralization and scalability.
arXiv:1810.02937v1 fatcat:rctjhu3q5jgrdfeb5itfa2oh54