Governance and Scalability

Summary

This chapter addresses two critical challenges for blockchain adoption: how blockchain networks are governed and how they scale. Students will examine the scalability trilemma, understand why on-chain and off-chain approaches make different tradeoffs, and evaluate Layer 1 and Layer 2 solutions including state channels and sidechains. The interplay between governance decisions and scalability constraints is a recurring theme.

Concepts Covered

This chapter covers the following 10 concepts from the learning graph:

  1. Scalability
  2. Scalability Trilemma
  3. On-Chain vs Off-Chain
  4. Layer 1
  5. Layer 2 Solutions
  6. State Channel
  7. Sidechain
  8. Performance Attribute
  9. Blockchain Limitations
  10. When Not to Use Blockchain

Prerequisites

This chapter builds on concepts from:


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