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Throughput

Network Metrics, Scaling

Throughput refers to the number of transactions, operations, or data packets a blockchain network, protocol, or application can process within a specific time frameÔÇötypically measured in transactions per second (TPS). High throughput is essential for scalability, as it determines how many users and applications a network can support without congestion, delays, or high fees. Throughput is affected by block size, block time, consensus mechanism, and the implementation of scaling solutions like Layer 2 protocols and rollups.

Use Case: Ethereum’s native throughput is limited to around 15 TPS, but Layer 2 solutions like Arbitrum or Optimism increase effective throughput to thousands of TPS, enabling high-volume DeFi and gaming apps to operate smoothly.

Key Concepts:

  • Layer One Protocol ÔÇö The base chain whose design sets foundational throughput limits.
  • Layer Two Protocol ÔÇö Scaling networks that boost throughput by processing transactions off-chain.
  • Rollups ÔÇö Bundle many transactions, dramatically increasing TPS while leveraging Layer 1 security.
  • Sidechains ÔÇö Independent networks that add parallel throughput to main chains.
  • Settlement Finality ÔÇö The point at which increased throughput still guarantees irreversible transaction completion.

Summary: Throughput measures a network’s capacity for handling activity at scale. High throughput is vital for global adoption of blockchain applications, reducing congestion, and lowering transaction costs as Web3 grows.


 

Network Native Throughput (TPS) With Scaling Solutions
Ethereum ~15 TPS 2,000+ TPS (Arbitrum, Optimism)
Bitcoin ~7 TPS 1,000+ TPS (Lightning Network)
Solana 2,000+ TPS (native) N/A (already high)
XRP Ledger 1,500 TPS N/A (no Layer 2 yet)

 

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