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.
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Proof-of-Work vs. Proof-of-Stake TPS Comparison
| Consensus Mechanism | Avg. TPS | Key Traits |
|---|---|---|
| Proof-of-Work (PoW) | Bitcoin: 7 | High security but energy-intensive; slow due to complex mining. |
| Proof-of-Stake (PoS) | Ethereum: 15-25 | Faster 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
- Actual TPS: Measured on live networks (e.g., Ethereum’s 15-25 TPS).
- Tested TPS: Achieved in controlled environments (e.g., Solana’s 65,000 TPS testnet results).
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Blockchain TPS Comparison: Top Networks Ranked
Bitcoin (PoW)
- Avg. TPS: 7
- Limitations: Small block sizes (1-1.5 MB) and 6-confirmation delays.
Ethereum (PoS)
- Avg. TPS: 15-25
- Layer-2 Solutions: Polygon, Arbitrum, and Optimism bundle transactions to boost speeds.
Solana (PoH)
- Avg. TPS: 2,825–4,500
- Theoretical Max: 710,000 TPS (per whitepaper).
Cosmos (Tendermint BFT)
- Peak TPS: 10,000
- Ecosystem: Interconnected chains with shared security.
Polkadot (NPoS)
- Avg. TPS: 1,000
- Future Goal: 1 million TPS with upgrades.
Ripple (UNL Consensus)
- Avg. TPS: 1,500
- Enterprise Focus: Optimized for institutional cross-border payments.
TPS vs. Finality: Why Both Matter
While TPS measures throughput, time to finality (TTF) determines when transactions become immutable.
| Blockchain | Avg. TPS | Time to Finality |
|---|---|---|
| Bitcoin | 7 | ~60 minutes |
| Ethereum | 15-25 | ~15 minutes |
| Avalanche | 4,500 | 0.15 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:
- Ledger Academy. (2023). Transactions Per Second (TPS) Explained.
- Solana Daily. (2021). Blockchain TPS Comparison.
- Pontem Network. (2022). TPS vs. Finality Analysis.