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:
- Scalability
- Scalability Trilemma
- On-Chain vs Off-Chain
- Layer 1
- Layer 2 Solutions
- State Channel
- Sidechain
- Performance Attribute
- Blockchain Limitations
- When Not to Use Blockchain
Prerequisites
This chapter builds on concepts from:
- Chapter 6: Nodes, Throughput, and Network Performance
- Chapter 9: Smart Contracts and Tokens
- Chapter 10: Blockchain Types and Platforms
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