Solving Blockchain Trilemma Using Off-Chain Storage Protocol

Abstract

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