failure family
scalability and throughput limit
- Prohibitive manual workload of per transaction fee settlement: Traditional per transaction fee models failed because settlement and calculation created a prohibitive amount of work that made such operations very d
- blockchain-trilemma: To date no blockchain coherently and comprehensively combines scale, security, and decentralization, the three objectives of the blockchain trilemma,
- Centralized supply shortfall: Existing centralized micro task marketplaces cannot adequately meet the rising demand for high quality labelled AI training data.
- Redundancy cost multiplication: Consensus by redundancy fails economically: multiplying the same work across many workers significantly increases the cost of micro task work.
- centralized internet scaling limit: The centralized version of the internet cannot scale to the thirty to fifty billion connected devices that experts expect by 2020, which is why decent
- supermajority-validator-requirement-cost: A 67% active validator requirement would improve finality but is excluded from the initial SPoS implementation because, by the CAP theorem, it limits
- no-scalable-secure-public-chain: The core issues that afflict centralized governance solutions, including information asymmetries, censorship, opportunism of agents, breaches of fiduc
- throughput-bottleneck: The low transaction throughput of public blockchains is a core limitation that holds back more advanced distributed applications, which is why decentr
- throughput-ceiling: The low transaction throughput of public blockchains is a core limitation that holds back more advanced distributed applications.
- scarcity-throughput-tradeoff: The data mining that produces scarcity in existing blockchains also slows creation, so high speed transactions cannot be achieved for the foreseeable
- experimentation-advantage-erodes-at-scale: The authors qualify their own case: stable cryptocurrencies can experiment with monetary policy on an unprecedented scale only because they are insula
- throughput-bottleneck: The low transaction throughput of public blockchains is a core limitation holding back more advanced distributed applications and, with them, decentra
- central coordination failure in distributed energy grids: Coordinating large numbers of decentralized energy resources from a central point of control is slow, inefficient, and resource intensive, a vulnerabi
- minimal on chain coverage: Only the most basic common denominator required to operate a fully functional Swiss Association can be run entirely on chain.
- infrastructure cannot absorb projected DeFi growth: The expected growth rate of DeFi, across diverse estimates, is large enough to call into question the long term viability of the existing decentralize
- infrastructure shortfall against growth potential: In the early 2020s the DeFi technology infrastructure was insufficiently developed to support DeFi growth estimates and growth potential, and fulfilli
- speed versus immutability tradeoff: The tradeoff between transaction approval speed and immutability has the potential to undermine the DeFi infrastructure in the long run.
- consensus cost versus attack resistance tradeoff: Consensus in decentralized systems presents a two sided cost problem: creating consensus raises the costs of prepping, processing, and storing informa
- network congestion under projected DeFi volume: Read together with the network capacity failure that CryptoKitties caused on Ethereum in December 2017, the expected DeFi growth rates imply that the
- Suboptimal layer 1 lock-in: Working with suboptimal layer 1 blockchain solutions that carry high gas fees and low throughput delays the evolution of DAO infrastructure design, be
- unpopular-file-unavailability: Existing decentralized filesharing networks cannot guarantee the availability of unpopular files such as personal files, whereas centralized cloud ser
- permanent-cost-of-full-verification: Blockchain transactions will always be expensive whether or not proof of stake is solved, because full participation requires downloading the entire t
- on-chain-capacity-ceiling: Ethereum is Turing complete in theory but cannot practically match even a cheap smartphone, because everything stored on the blockchain must be stored
- paperwork crisis: The paper certificate system failed at scale: trust companies and intermediaries were overwhelmed by changing ownership records, and from 1967 to 1970
- token value short termism: The DAO focus on enhancing the value of fungible tokens can produce short termism and can cause ethical and governance issues to be ignored, even as i
- loss of economies of scale: Decentralization is not always efficient, because centralized economies of scale can create the near-optimal efficiencies for economic growth and dece
- oral scale limit: Direct democracy failed to reflect the will of the group once villages grew into cities, because the information technology of the spoken word imposes
- token value short termism: Because DAO performance assessment is based on optimizing fungible token value rather than on hierarchical or political processes, the focus on token
- On-chain voting inefficiency: Contemporary blockchains cannot support the proposed architecture because the technology is too slow and expensive to poll members on every transactio
- blockchain trilemma constraint: Blockchain can only deliver decentralized AI governance if the blockchain trilemma is first overcome, since decentralization, security, and scalabilit
- rigid coordination topology: The rigid communication topology of federated learning, which requires constant coordination among numerous nodes, produces inefficiencies and does no
- Review Latency Rework: Code reviews in legacy systems can last weeks and months, and these delays can force complete rewriting of contracts because the underlying protocol m
- Review latency obsolescence: Legacy code reviews can last weeks or months, and those delays can force complete rewrites of contracts because the underlying protocol may have upgra
- unresolved scalability, governance, and security constraints: DAOs still face unresolved challenges of scalability, governance, and the need for robust security measures, which constrain their adoption despite th
- Compute scaling wall: The computational cost of improving deep learning performance scales so badly that halving the error rate is estimated to require over five hundred ti
- Communication cost dominance: In federated learning the communication cost of many edge devices sending model parameters to a central server frequently exceeds the computation cost
- Quadratic attention cost: The self attention mechanism in transformers scales quadratically with input sequence length, which makes transformers expensive and slow to train and
- Sampling versus clustering trade off: GNN scalability on large real world graphs is a genuine trade off rather than an engineering gap: sampling methods lose influential neighbors while cl
- real-time pipeline latency failure: Latency, throughput limits, and the absence of fully automated continuous training and validation together defeat the timeliness advantage that real-t
- blockchain throughput bottleneck: Decentralized data annotation at scale is not operationally feasible without advances in consensus algorithms or layer-two scaling, because existing b
- reputation-update-scalability-strain: The defenses that secure SPoS may not scale: frequent reputation updates and zk-SNARK verifications may strain resources under high transaction loads,
- zero friction breakdown at scale: Network congestion externalities and Sybil attack vulnerabilities require the deliberate reintroduction of micro frictions, such as tokenized tolls or