Blockchain Performance Gap Exposed: Theoretical vs. Real-World Results

Steven Pu, co-founder of layer-1 blockchain Taraxa, has released a report highlighting a significant gap between claimed and actual blockchain performance. The study analyzed 22 networks using data from Chainspect and found that theoretical transactions per second (TPS) are overstated by an average of 20 times compared to real-world results.

Understanding the Discrepancy

According to the findings, this discrepancy stems from lab-based metrics that fail to hold up on live mainnets. The report introduces a new metric: TPS per dollar spent on a validator node (TPS/$), aiming to measure cost-efficiency rather than just raw speed.

Across the 22 chains, theoretical TPS averaged 20 times higher than observed mainnet performance, with only four networks achieving double-digit TPS/$ ratios. This suggests that many blockchains require costly hardware for modest transaction rates, challenging claims of scalability and decentralization.

“We should all stick with transparent, verifiable, on-chain performance metrics,”

Implications for the Industry

Pu’s findings suggest that the industry’s focus on high TPS misleads stakeholders. Bitcoin (BTC) and Ethereum (ETH), for example, prioritize security over speed, while newer chains tout big numbers that rarely materialize. The TPS/$ metric could shift how developers assess networks for practical use cases like payments or supply chain tracking.

Key Takeaways

• Theoretical TPS is overstated by an average of 20 times compared to real-world results.
• Only four networks achieved double-digit TPS/$ ratios.
• The TPS/$ metric could redefine how blockchain sustainability is evaluated.
• Cost-efficiency metrics like TPS/$ could shift focus toward networks that deliver practical value rather than just high theoretical speeds.

Taraxa Pushes for Transparency

Taraxa, a proof-of-stake layer-1 focused on audit logging, frames this as a wake-up call. Pu urges reliance on verifiable mainnet data over whitepaper hype, as inflated statistics could distort investment and development decisions.

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