Solving Blockchain Trilemma Using Off-Chain Storage Protocol

Abstract

Trilemma in blockchain refers to the infamous problem of simultaneously not delivering thethree critical aspects of a ledger: security, scalability and decentralization. While securityand scalability hinder decentralization, security is jeopardized if the scalability is escalated.This deficiency of not maintaining a balance among these three crucial factors restricts thebroader adoption of blockchain technology and cryptocurrencies in the industries. Thisresearch proposes a solution to the blockchain trilemma by implementing a public ledgerusing The InterPlanetary File System (IPFS) and a newly introduced strategy called thedouble-chain technique. The scalability and decentralization features are guaranteed bythe distributed file system of IPFS and the public nature of the blockchain suggested inthis thesis. Although any consensus can be plugged into our system, the proof-of-workconsensus is utilized to ensure that the security is not compromised while stabilizingscalability and decentralization.