Scaling risk

Blockchain Trilemma

• Decentralization
• Scalability
• Security

Tradeoffs refers to the inability to achieve all three. For example, the more centralized blockchains are much scalable.

Vertical scaling

Vertical scaling centralizes all transaction processing to a single node.

Horizontal Scaling (Sharding)

Opposite to Vertical scaling, Horizontal Scaling splits the processing to serveral nodes. (e.g. Proof of stake)