The DCS Theorem

TL;DR

This paper presents a probability proof of the DCS Triangle, demonstrating that blockchain systems cannot simultaneously optimize decentralization, consensus, and scale, and discusses methods to overcome these limitations.

Contribution

It provides a formal probabilistic proof of the DCS Triangle and explores strategies to bypass its inherent tradeoffs in blockchain design.

Findings

Decentralization, Consensus, and Scale cannot all be maximized simultaneously in blockchain systems.

The paper offers two methods to mitigate the tradeoffs imposed by the DCS Triangle.

A formal probability proof of the DCS Triangle is introduced.

Abstract

Blockchain design involves many tradeoffs, and much debate has focused on tradeoffs related to scaling parameters such as blocksize. To address some of the confusion around this subject, we present a probability proof of the DCS Triangle. We use the triangle to show decentralized consensus systems, like blockchains, can have Decentralization, Consensus, or Scale, but not all three properties simultaneously. We then describe two methods for getting around the limitations suggested by the triangle.