What is a trilemma?
As per Oxford, a trilemma is when a difficult choice has to be made between three alternatives, especially when these are equally undesirable. If you have been around crypto for a while, you would be pretty familiar with the word “trilemma.” It seems like every single concept in crypto has a “trilemma” behind it, namely the “scalability” and “stablecoin” trilemmas.
- The scalability trilemma states that a protocol can have only two properties: scalability, decentralization, and security.
- Stablecoin trilemma states that a protocol can have only two properties: stability, capital efficiency, and decentralization.
How do protocols balance the three extremes in both the trilemmas? Let’s find out:
