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Transactions Per Second (TPS)

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Table of contents
    1. 0.2. How TPS Works
    2. 0.4. Why TPS Matters

Transactions Per Second (TPS) is a measure of the number of transactions a blockchain or network can process in one second.

How TPS Works

TPS is a key metric used to assess a blockchain’s performance and scalability. It reflects how quickly the network can handle transaction requests and is influenced by factors such as block size, block time, consensus mechanisms, and network load. Higher TPS indicates a more efficient and faster blockchain.

Why TPS Matters

A higher TPS is crucial for supporting large-scale applications and high-volume activity, such as decentralized finance (DeFi) and NFTs. It directly impacts user experience, as higher TPS leads to quicker confirmations and less congestion. It also influences how well a blockchain can compete with centralized systems or other blockchains in terms of speed and scalability.