A novel Layer 2 framework for breaking the blockchain trilemma problem using MPC-in-the-Head

Abstract

The blockchain trilemma, which poses inherent trade-offs among security, scalability, and decentralization, remains a critical challenge in blockchain technology. While numerous Layer 1 (L1) blockchains and Layer 2 (L2) scaling solutions have attempted to address these dimensions, no single approach has successfully optimized all three simultaneously. This study proposes an innovative L2 framework that leverages both classic and advanced cryptographic techniques to break the blockchain trilemma comprehensively. By incorporating the lightweight Knapsack-based encryption scheme, the framework achieves efficient computation and throughput, even for a large volume of transactions. Additionally, the integration of the MPC-in-the-Head (MPCitH) protocol ensures robust confidentiality while maintaining computational efficiency. The proposed framework introduces a novel reference model for evaluating blockchain solutions and demonstrates superiority across all trilemma dimensions. Experimental analysis and rigorous proofs confirm that this framework achieves enhanced scalability, decentralization, and security compared to existing approaches, offering a new benchmark for blockchain innovation.