Understanding Blockchain Throughput: Why Transactions Per Second Aren’t Everything

Decoding Blockchain Throughput

The world of blockchains often heralds transactions per second (TPS) as the holy grail, a shiny number that tech enthusiasts parade like a trophy. However, it’s high time to peel back the layers and see what’s lurking under the surface. After all, not everything that glitters is gold, right?

Transactions Are More Than Just Numbers

Let’s face it: equating high TPS with a superior blockchain is like judging a book by its cover. It sounds impressive when a blockchain claims it can handle thousands of TPS, but the reality is often more complicated. A lot of this noise stems from how TPS is measured.

• Basic Transfers vs. Complex Transactions: Most high TPS metrics stem from basic token transfers, which are simpler than the multi-layered intricate transactions that are popping up everywhere.
• Inconsistent Calculations: Sometimes, the numbers include all sorts of extra data that shouldn’t count as transactions, like Solana’s consensus messages. It’s like including your grocery store receipts in your monthly budget—confusing and unhelpful!

The Blurred Lines of Latency

So, what gives? While we’re busy debating TPS, there’s another big player in town: latency. Ever submitted a transaction and felt like you were waiting for a kettle to boil? That’s latency in action. It’s all about how fast your transaction gets confirmed once it has been submitted, measured by block time and time to finality.

Users might care more about getting their transactions through quickly than the flashy TPS stats that companies throw around like confetti at a parade. If your pizza is 10 minutes late, do you care how many pizzas the restaurant can theoretically make in an hour? No! You just want your pizza!

Swaps per Second: The New Yardstick

Let’s take a step further into the nitty-gritty of blockchain use cases — decentralized finance (DeFi). When users engage in swaps, they’re diving into a sea of calculations and actions that draw their prudent time and consideration:

1. Checking liquidity pool balances.
2. Making token transfers.
3. Rebalancing pools post-swap.
4. Calculating fees and yield transfers.

In essence, swaps require an entirely new metric: swaps per second (SPS). Like a fine wine, it’s about quality over quantity. Research shows that using SPS gives us a more accurate and relatable comparison, bridging the chasm often left by the TPS metric.

Do We Need Better Benchmarking?

Yes, yes, a thousand times yes! The truth is, no single metric can capture the sprawling complexity of blockchain performance. Just like you wouldn’t use a single test score to judge a student, we shouldn’t lean solely on TPS to evaluate a blockchain. Other considerations, like decentralization, usability, and security, play crucial roles, too.

Research from organizations like Dragonfly and the EOS Network Foundation has made it clear: only through better metrics—like swaps per second—can we hope to understand where blockchains stand on the roadmap to mainstream adoption. It’s an exciting time, but strap in; we have a long way to go!