Explanation:
In the context of the scalability trilemma, when a blockchain network focuses on scalability and security at the cost of decentralization, it often leads to the concentration of power in the hands of a few validators or entities. This centralization is a significant structural flaw, as it contradicts the fundamental ethos of blockchain technology, which is to offer a decentralized and distributed system. By centralizing power, the network becomes vulnerable to potential manipulation and control by these few entities, which can compromise the network's integrity and the trust of its users.
A is incorrect because prioritizing scalability and security over decentralization actually reduces the level of decentralization, contrary to ensuring maximum decentralization.
B is incorrect as while prioritizing security may make the network resistant to threats and manipulations, this does not address the centralization issue that arises from compromising on decentralization.
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Q.5742 Considering the scalability trilemma in blockchain technology, what happens when a blockchain network prioritizes scalability and security, but at the expense of decentralization?
A
The network achieves maximum decentralization, ensuring equal participation and control by all network members.
B
The network becomes highly resistant to all forms of external cyber threats and internal manipulations.
C
The network experiences a concentration of power among a few validators or entities, undermining the principle of decentralization inherent in blockchain technology.
D
The network ensures complete interoperability with all existing blockchain and traditional financial systems.