What Is ‘Transaction Throughput’ in Blockchain Technology?
Transaction throughput refers to the number of transactions a blockchain network can process and confirm within a specific time frame, typically measured in transactions per second (TPS). It is a key metric for assessing a network's scalability and efficiency.
High throughput is essential for applications requiring rapid processing, such as payment systems and decentralized exchanges.
Glossar
Throughput
Capacity ⎊ ⎊ Throughput, within cryptocurrency and derivatives markets, fundamentally represents the rate at which a system processes transactions or data, often measured in transactions per second (TPS) or orders per millisecond.
Sharding Techniques
Scalability ⎊ Sharding techniques, within cryptocurrency and financial derivatives, address inherent limitations in processing throughput by partitioning the blockchain or computational workload.
Transactions per Second
Throughput Metric ⎊ Transactions Per Second quantifies the raw processing capacity of a distributed ledger, representing the maximum number of distinct, finalized transactions the network can confirm within a sixty-second interval.
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.