At the recent Future Blockchain Summit, Leila Salieva, a renowned blockchain strategist, marketing veteran, and co-founder of Sombrero Galaxy Agency, voiced the industry’s key challenges in scaling blockchain technologies. In her speech, she emphasized that the blockchain industry remains in a scalability trilemma, where difficult decisions must be made regarding maintaining security, scalability, and decentralization.
“Sacrificing decentralization in many cases, which is understandable, don’t get me wrong,” Leila noted. She urged forum participants to pay attention to the existing limitations of smart contracts and the need to understand new consensus mechanisms that could open up new opportunities for applying blockchain technologies.
Leila spoke about the need to develop education among native Web2 users to create bridges between the two worlds and help them better understand the possibilities of blockchain. “Increasing transaction speed (scalability) might involve larger block sizes or shorter block times, potentially making the network more vulnerable to attacks or leading to increased centralization,” she added.
Her advice for those involved in blockchain projects is to carefully analyze the market and assess the fundamental needs for scalability.
Leila emphasized several best practices for maintaining security in scalable solutions, particularly focusing on consensus mechanisms based on Byzantine Fault Tolerance (BFT) because they utilize cryptography to safeguard information. She cited Hyperledger Fabric as a notable example, which implements a variant of Practical BFT (PBFT), and DMD Diamond, which develops Honey Badger BFT (HBBFT). Additionally, Leila stressed the importance of having a clear governance structure: “It is essential to establish well-defined roles and voting algorithms within the governance framework.”
Leila emphasized the need for collaboration between developers, researchers, and stakeholders to create industry standards and best practices. Unfortunately, the existing technology is limited; smart contracts limit many use cases. There is a lack of understanding of new consensus mechanisms that already exist,” she concluded.
Leila concluded her presentation by calling on participants to learn and share knowledge, noting that multiple participants can work together to succeed when a single network fails.
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