What Is ‘Throughput’ in a Blockchain Network?
Throughput is a measure of the number of transactions a blockchain network can process and confirm per second (TPS). It is a key metric for scalability.
High throughput is essential for supporting a large number of users and complex applications. Factors like block size/Gas Limit, block time, and consensus mechanism directly influence a network's throughput.
Glossar
High Throughput
Capacity ⎊ High throughput within cryptocurrency, options trading, and financial derivatives signifies the system’s ability to process a large number of transactions or requests per unit of time, directly impacting operational efficiency and scalability.
Consensus Mechanism
Validation ⎊ Consensus mechanisms, within cryptocurrency, represent the procedural logic ensuring state agreement across a distributed network, critical for preventing double-spending and maintaining data integrity; their design directly impacts network security and scalability, influencing transaction throughput and finality times, particularly relevant in decentralized finance applications.