TPS (Transactions Per Second)
TPS, or Transactions Per Second, is a measure of the number of transactions that can be completed in one second on a given blockchain network. It is an important metric for assessing the performance and scalability of any cryptocurrency system. A higher TPS rate usually indicates faster transaction processing times and greater capacity to handle large amounts of activity.
A blockchain’s TPS rate depends on its underlying technology, such as consensus algorithms, block size limitations, and hardware components like nodes and miners. Different networks have different capabilities when it comes to their maximum TPS potential – while some are able to process thousands of transactions per second, others may only manage a few dozen at most. The average Bitcoin transaction takes up to 10 minutes to complete due to its limited block size which caps the amount of data that can be stored within each block; this results in slower processing speeds than other cryptocurrencies with larger blocksizes or those using alternative consensus algorithms like PoS or DPoS instead of PoW mining used by Bitcoin.
The current leader in terms of total TPS rate is Ethereum 2.0 which achieved over 50k TPs during its recent Phase 0 launch; however there are many projects aiming for even higher throughputs through various scaling solutions such as sharding or sidechains which could enable them to process millions if not billions per second eventually!