What Is the Trade-off between Security and Throughput in Consensus Models?
There is an inherent trade-off, often called the 'scalability trilemma.' Increasing throughput, for example, by increasing block size or reducing block time, can compromise security or decentralization. Faster block propagation is harder for globally distributed nodes, increasing the risk of chain forks and centralizing mining.
Stronger security, like high PoW difficulty, can slow down transaction processing.
Glossar
Central Bank Digital Currency
Architecture ⎊ Central Bank Digital Currency represents a fundamental shift in monetary system infrastructure, potentially enabling programmable money and real-time settlement capabilities within existing financial rails.
Sharding Techniques
Scalability ⎊ Sharding techniques, within cryptocurrency and financial derivatives, address inherent limitations in processing throughput by partitioning the blockchain or computational workload.