What Is Throughput?
Throughput is the rate at which actions or transactions are completed within a given timeframe.
In blockchain technology, throughput refers explicitly to the speed at which a blockchain network processes transactions.
Measuring Blockchain Efficiency
The most common unit of measurement for throughput in blockchain is transactions per second (TPS), which indicates how many transactions can be confirmed and added to the blockchain within a one-second interval.
However, throughput can also be expressed in other units, such as transactions per minute (TPM) or per hour (TPH).
Consensus’s Role in Throughput
The transaction throughput of a blockchain platform is influenced by several factors, including its consensus mechanism. Different consensus mechanisms, such as proof-of-work (PoW) and proof-of-stake (PoS), can impact the speed and efficiency of transaction processing. Generally, PoS blockchains tend to have higher throughput compared to PoW blockchains.
Beyond Consensus
Other factors that can affect throughput include the blockchain’s block size, the complexity of transactions being processed, and the level of network traffic.
Higher network traffic or more complex transactions can reduce throughput by increasing the time required to validate and confirm each transaction.
It’s worth noting that the throughput of a blockchain network may vary depending on the specific use case or workload.
Scaling Blockchain
Blockchain developers are continually exploring and implementing various techniques and solutions to increase the throughput of blockchain networks.
These include technologies like rollups, sidechains, state channels, and developing new consensus mechanisms and optimizations to increase block size.
Improving throughput is crucial for blockchain scalability, as it allows for more efficient and faster transaction processing, enabling blockchain networks to handle larger transaction volumes and support broader adoption in various industries.