Transactions Per Second (TPS)

Transactions per second (TPS) in the context of blockchains refers to the number of transactions that a network is capable of processing each second. The average TPS of Ethereum can be up to 10. Over the years, there has been significant study into the creation of technology that boosts the transaction rate of blockchains. The ability of these decentralized networks to scale for rising demand presents entirely new difficulties. This problem involves more than just raising TPS. Thousands of transactions may currently be handled per second by centralized databases. For instance, VISA processes 1,500–2,000 transactions every second. So why not simply apply these fixes? The fundamental issue here is that while preserving a high level of decentralization, blockchains like Ethereum and others seek to compete with them. Decentralization compromises security and performance. Therefore, any scaling solutions must simultaneously maintain all the other desirable characteristics of blockchain in addition to improving the network's throughput. In any other case, blockchain is essentially just a slow database. It's crucial to remember that a blockchain's TPS does not automatically make it better than other blockchains with lower TPS. Numerous blockchain projects take pride in their high TPS figures. But it's almost clear that such performance came at the expense of other crucial network components.