Transactions Per Second (TPS): The Complete Guide

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Transactions Per Second (TPS) Is The Most Common Way To Compare The Speeds Of Different Blockchains

Transactions per second (TPS) measures the number of transactions a computer network can process in one second. It's a critical metric for comparing blockchain speeds, though finality—when transactions become irreversible—is often considered more essential. Blockchain TPS isn't static; higher transaction volumes slow processing, reducing TPS.

👉 Explore how leading blockchains optimize TPS

Proof-of-Work vs. Proof-of-Stake TPS Comparison

Consensus MechanismAvg. TPSKey Traits
Proof-of-Work (PoW)Bitcoin: 7High security but energy-intensive; slow due to complex mining.
Proof-of-Stake (PoS)Ethereum: 15-25Faster validation; relies on staked tokens rather than computational power.

PoS networks generally outperform PoW in speed and scalability. For instance, Solana’s modified PoS (Proof of History) achieves 4,500+ TPS vs. Bitcoin’s 7.

Real-World vs. Theoretical TPS

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Blockchain TPS Comparison: Top Networks Ranked

Bitcoin (PoW)

Ethereum (PoS)

Solana (PoH)

Cosmos (Tendermint BFT)

Polkadot (NPoS)

Ripple (UNL Consensus)


TPS vs. Finality: Why Both Matter

While TPS measures throughput, time to finality (TTF) determines when transactions become immutable.

BlockchainAvg. TPSTime to Finality
Bitcoin7~60 minutes
Ethereum15-25~15 minutes
Avalanche4,5000.15 seconds

Key Insight: Avalanche’s sub-second finality makes it ideal for real-time applications.


FAQs

Q: Which blockchain has the highest TPS?
A: Cosmos and Hedera lead with ~10,000 TPS in real-world conditions, while Solana claims a theoretical max of 710,000 TPS.

Q: How does TPS compare to Visa?
A: Visa’s estimated TPS ranges from 1,700–24,000, outpacing Bitcoin/Ethereum but lagging behind Cosmos and Solana.

Q: Why is finality important?
A: It ensures transactions can’t be reversed, critical for financial and contractual applications.

Q: Can blockchain TPS surpass traditional systems?
A: Yes—chains like Aptos (160,000 testnet TPS) and Solana are closing the gap with Visa/SWIFT.


Conclusion

TPS remains a vital benchmark for blockchain speed, but finality and scalability are equally crucial. As PoS networks and Layer-2 solutions evolve, blockchains like Cosmos and Avalanche are setting new standards, rivaling legacy systems like Visa.

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References:

  1. Ledger Academy. (2023). Transactions Per Second (TPS) Explained.
  2. Solana Daily. (2021). Blockchain TPS Comparison.
  3. Pontem Network. (2022). TPS vs. Finality Analysis.