What is Throughput?

Throughput is the number of transactions a blockchain can process per second (TPS). Bitcoin manages roughly 7 TPS; Ethereum roughly 15 far below what mainstream applications require.

How does Throughput work?

Throughput depends on block size, block time, and transaction complexity. Larger blocks or faster block times increase TPS but raise hardware requirements for node operators, threatening decentralization.

There is no free lunch every throughput improvement trades off against security or decentralization.

Why does Throughput matter?

Low throughput causes congestion and high fees during peak demand, making the network impractical for everyday use.

Key features of Throughput

Measured in transactions per second (TPS)
Bottlenecked by block size and block time
Layer 2s dramatically increase effective throughput without changing Layer 1
Higher throughput typically requires decentralization trade-offs

Examples of Throughput

Arbitrum processes 40,000+ TPS by batching off-chain. Solana claims 65,000+ TPS through pipelining but with higher hardware requirements.

Ethereum mainnet at 15 TPS still relies on Layer 2s for affordable everyday transactions.