Blockchain
Throughput
The number of transactions a blockchain can process per second (TPS). Higher throughput means faster transaction processing and lower fees during high demand.
Last updated: January 5, 2025
What is Throughput?
Throughput measures how many transactions a blockchain network can process per unit of time, typically expressed as Transactions Per Second (TPS). It’s a key metric for understanding a network’s capacity and scalability.
Why Throughput Matters
User Experience
- Higher TPS = faster confirmations
- Lower TPS = congestion and delays
- Affects practical usability
Fee Impact
- Low throughput + high demand = expensive fees
- High throughput = lower, stable fees
- Critical for everyday transactions
Scalability
- Can network handle mass adoption?
- Enterprise use requirements
- Future growth potential
Throughput Comparison
| Network | TPS | Block Time | Notes |
|---|---|---|---|
| Bitcoin | 7 | 10 min | Intentionally limited |
| Ethereum L1 | 15-30 | 12 sec | Pre-scaling |
| Ethereum + L2 | 2,000+ | Variable | With rollups |
| Solana | 65,000 | 400ms | Theoretical max |
| BNB Chain | 160 | 3 sec | Centralized trade-off |
| Visa | 24,000 | N/A | Traditional comparison |
Factors Affecting Throughput
Block Parameters
- Block size: Larger = more transactions
- Block time: Faster = more blocks
- Data compression: More efficient = higher capacity
Consensus Mechanism
- PoW: Generally slower
- PoS: Can be faster
- DPoS: Fastest but less decentralized
Network Design
- Node requirements: Higher = fewer nodes, faster
- Parallel processing: Enables higher TPS
- Sharding: Splits processing load
The Scalability Trilemma
Blockchains struggle to optimize all three:
Decentralization
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Security ---- Scalability- Bitcoin: Maximizes security + decentralization
- Solana: Maximizes scalability + security
- Private chains: Maximize scalability (sacrifice decentralization)
Solutions for Higher Throughput
Layer 2 Solutions
- Process transactions off main chain
- Periodic settlement to L1
- Examples: Lightning, Arbitrum, Optimism
Sharding
- Split network into pieces
- Parallel processing
- Ethereum’s future roadmap
Alternative Architectures
- DAG (IOTA, Hedera)
- Parallel execution (Solana)
- Rollups (various)
Measuring Real Throughput
Theoretical vs Actual
- Marketing claims often theoretical max
- Real-world usually lower
- Test during peak congestion
What to Consider
- Average TPS over time
- Peak capacity
- Performance during stress
- Finality time (not just inclusion)
Trade on networks that balance throughput with security through exchanges like Binance and Coinbase.
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