What is transactions per second (TPS) in crypto?

Transactions per second (TPS) is a crucial metric in the cryptocurrency world, measuring the performance and efficiency of blockchain networks. This article explores the concept of TPS, its importance, and how it impacts various aspects of cryptocurrency transactions.

What is transaction per second (TPS)?

Transactions per second (TPS) refers to the number of transactions a blockchain network can process in one second. It's a key indicator of a network's performance and scalability. Blockchains typically have both an average TPS and a maximum TPS, with the latter coming into play during periods of high network activity.

For example, Bitcoin, the largest cryptocurrency, has a relatively low TPS of around 5-7 transactions per second. This contrasts sharply with traditional payment systems like VISA, which can reportedly handle over 65,000 TPS.

What does TPS mean for blockchain network speed?

TPS is directly related to the speed of a blockchain network. A higher TPS generally indicates faster transaction processing times. However, it's not the sole determinant of network speed. Another important factor is the transaction finality time, which is the time required to confirm a transaction.

Different cryptocurrencies have varying TPS capabilities. For instance, while Bitcoin averages 5-7 TPS, Ethereum, following its upgrade to Proof of Stake, has significantly improved its TPS capacity.

Do blockchain transaction speeds matter?

Transaction speeds are indeed crucial in the cryptocurrency world. In our fast-paced digital age, users expect quick and seamless transactions. High TPS rates become even more important as the number of cryptocurrency users grows.

Low TPS can lead to network congestion, resulting in long wait times for transaction processing. This can negatively impact user experience and potentially increase transaction fees as users compete for faster processing times.

Moreover, TPS is closely linked to blockchain scalability. As cryptocurrency adoption increases, networks need to be able to handle growing demand by increasing their TPS capacity.

Which cryptocurrency networks are the fastest?

Several cryptocurrency networks have made significant strides in improving their TPS:

1. Solana (SOL): Known for its high-speed capabilities, with a substantial TPS capacity.

2. SUI: A Layer-1 blockchain with impressive TPS claims.

3. BNB Smart Chain: Demonstrating notable real TPS speeds.

4. Ethereum: Following its upgrades, it has significantly increased its maximum TPS.

5. XRP (RippleNet): Reportedly capable of handling a high number of TPS.

The final word

As the cryptocurrency industry continues to evolve, the importance of high TPS cannot be overstated. It's a critical factor in ensuring the scalability and efficiency of blockchain networks. The significant improvements in TPS across various networks demonstrate the industry's commitment to meeting growing demand and enhancing user experience. As crypto adoption rises, we can expect further innovations in this area, potentially pushing TPS capabilities to new heights and solidifying the role of cryptocurrencies in the global financial landscape.

FAQ

What crypto can do 100,000 transactions per second?

Ethereum aims to reach 100,000 TPS through ongoing scalability improvements, but no crypto currently achieves this level.

How many bitcoin transactions per second?

Bitcoin processes approximately 7 transactions per second. This rate remains relatively constant as of 2025, significantly lower than centralized payment systems.

Did someone really pay 10,000 Bitcoin for pizza?

Yes, in 2010, Laszlo Hanyecz famously paid 10,000 bitcoins for two pizzas. This transaction is now celebrated annually as 'Bitcoin Pizza Day' on May 22.

What happened to the guy who tossed a hard drive with 7500 bitcoins?

James Howells accidentally threw away a hard drive containing 7,500 bitcoins in 2013. Despite numerous attempts to recover it from a landfill, the bitcoins remain lost.