# Why Is a High Transaction Throughput Challenging for PoW Networks? ⎊ Path

**Published:** 2025-12-04
**Author:** Greeks.live
**Categories:** Path

---

## Why Is a High Transaction Throughput Challenging for PoW Networks?

A high transaction throughput is challenging for Proof-of-Work networks due to the trade-off with decentralization and security. Increasing the block size to include more transactions leads to larger blocks, which are slower to propagate across the network.

This can increase the orphan rate and favor large mining pools, reducing decentralization. Furthermore, a faster block time to increase throughput can compromise security by increasing the risk of temporary forks and reorgs, which is antithetical to the security guaranteed by the Merkle Root.

- [What Is the Difference between “Soft Forks” and “Hard Forks” in Blockchain Governance?](https://learn.greeks.live/path/what-is-the-difference-between-soft-forks-and-hard-forks-in-blockchain-governance/)

- [How Quickly Must a Valid Block Be Propagated across the Network?](https://learn.greeks.live/path/how-quickly-must-a-valid-block-be-propagated-across-the-network/)

- [How Does the Centralization of Liquidity Affect Market Depth across Crypto Exchanges?](https://learn.greeks.live/path/how-does-the-centralization-of-liquidity-affect-market-depth-across-crypto-exchanges/)

- [What Is the Concept of ‘Miner Centralization’ and Its Risk to PoW Security?](https://learn.greeks.live/path/what-is-the-concept-of-miner-centralization-and-its-risk-to-pow-security/)

- [What Is the Concept of a “Soft Fork” versus a “Hard Fork” in Blockchain Upgrades?](https://learn.greeks.live/path/what-is-the-concept-of-a-soft-fork-versus-a-hard-fork-in-blockchain-upgrades/)

- [How Do Crypto-Specific Events like Forks or Airdrops Affect Option Pricing?](https://learn.greeks.live/path/how-do-crypto-specific-events-like-forks-or-airdrops-affect-option-pricing/)

- [What Is a “Contentious Hard Fork” versus a “Planned Hard Fork”?](https://learn.greeks.live/path/what-is-a-contentious-hard-fork-versus-a-planned-hard-fork/)

- [How Does a ‘Fork’ Occur in a Blockchain Network?](https://learn.greeks.live/path/how-does-a-fork-occur-in-a-blockchain-network/)

## Glossar

### [Low Transaction Throughput](https://learn.greeks.live/area/low-transaction-throughput/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Bottleneck ⎊ Low transaction throughput represents a systemic constraint within a distributed ledger or trading infrastructure, limiting the rate at which operations can be confirmed and settled.

### [Throughput](https://learn.greeks.live/area/throughput/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

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.

### [High Transaction Throughput](https://learn.greeks.live/area/high-transaction-throughput/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Capacity ⎊ High transaction throughput, within cryptocurrency, options, and derivatives markets, fundamentally represents the rate at which a system can process and settle transactions successfully.

### [Transaction Throughput](https://learn.greeks.live/area/transaction-throughput/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Capacity ⎊ The transaction throughput, within cryptocurrency, options, and derivatives markets, fundamentally represents the rate at which transactions or orders can be processed and settled within a given timeframe, typically measured as transactions per second (TPS).

### [Proof-Of-Work Networks](https://learn.greeks.live/area/proof-of-work-networks/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Mechanism ⎊ Proof-of-Work networks utilize a cryptographic consensus mechanism where miners compete to solve a computationally intensive puzzle to validate new blocks of transactions and append them to the blockchain.

### [Faster Block Time](https://learn.greeks.live/area/faster-block-time/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Velocity ⎊ Faster Block Time refers to the architectural decision to decrease the target interval between successive block discoveries, fundamentally increasing the transactional velocity of the network.

## Discover More

### [How Do 'Mining Pools' Affect the Decentralization of PoW Networks?](https://learn.greeks.live/path/how-do-mining-pools-affect-the-decentralization-of-pow-networks/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Do 'Mining Pools' Affect the Decentralization of PoW Networks?](https://learn.greeks.live/wp-content/uploads/2025/10/Kinetic-Bifurcation-Mechanism-Abstract-Representation-of-Volatility-Skew-Hedging-Strategies.webp)

Pools stabilize miner income but concentrate hash power under a few entities, posing a risk to decentralization.

### [Can High Implied Volatility Mitigate the Effect of High Theta?](https://learn.greeks.live/path/can-high-implied-volatility-mitigate-the-effect-of-high-theta/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Can High Implied Volatility Mitigate the Effect of High Theta?](https://learn.greeks.live/wp-content/uploads/2025/10/Striated-Glass-Sphere-Knob-Reflecting-Diagonal-Bands-on-Black-Background-Cryptocurrency-Derivatives-Analysis.webp)

High IV increases the extrinsic value buffer, but the rate of Theta decay remains, and a drop in IV can compound losses.

### [Why Are Smaller PoW Chains More Susceptible to a 51% Attack?](https://learn.greeks.live/path/why-are-smaller-pow-chains-more-susceptible-to-a-51-attack/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Why Are Smaller PoW Chains More Susceptible to a 51% Attack?](https://learn.greeks.live/wp-content/uploads/2025/10/Complex-High-Fidelity-Simulation-of-Tokenized-Asset-Winglet-Actuator-Dynamics-For-Option-Hedging-Strategies.webp)

Smaller PoW chains have lower total hash rates, making it cheaper and easier to acquire 51% control.

### [How Do Different Consensus Mechanisms (PoW Vs. PoS) Influence Transaction Fee Volatility?](https://learn.greeks.live/path/how-do-different-consensus-mechanisms-pow-vs-pos-influence-transaction-fee-volatility/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Do Different Consensus Mechanisms (PoW Vs. PoS) Influence Transaction Fee Volatility?](https://learn.greeks.live/wp-content/uploads/2025/10/Tokenized-Financial-Instrument-Futures-Hedging-Mechanisms-Illustrated-by-Translucent-Digital-Replicas.webp)

PoW's high operational costs can drive aggressive fee bidding, while PoS often incorporates mechanisms for more predictable, less volatile fees.

### [Are There Any Studies That Attempt a Comprehensive Energy Comparison of PoW and Traditional Finance?](https://learn.greeks.live/path/are-there-any-studies-that-attempt-a-comprehensive-energy-comparison-of-pow-and-traditional-finance/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Are There Any Studies That Attempt a Comprehensive Energy Comparison of PoW and Traditional Finance?](https://learn.greeks.live/wp-content/uploads/2025/10/Quantum-Cryptographic-Sphere-Apex-Overlaying-Automated-Market-Maker-Structure-Indicating-Volatility-Skew.webp)

Studies exist, but they are debated due to varying methods and a lack of clear data, especially from traditional finance.

### [How Does a High Transaction Fee Influence a Transaction's Priority in the Mempool?](https://learn.greeks.live/path/how-does-a-high-transaction-fee-influence-a-transactions-priority-in-the-mempool/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does a High Transaction Fee Influence a Transaction's Priority in the Mempool?](https://learn.greeks.live/wp-content/uploads/2025/10/Asymmetric-Dual-Winged-High-Frequency-Trading-Vector-Approaching-Lunar-Settlement-Derivatives-Horizon.webp)

Higher fee increases miner incentive, leading to faster selection and inclusion in the next block.

### [How Do Electronic Communication Networks (ECNs) Prevent Front-Running in Traditional Options?](https://learn.greeks.live/path/how-do-electronic-communication-networks-ecns-prevent-front-running-in-traditional-options/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Do Electronic Communication Networks (ECNs) Prevent Front-Running in Traditional Options?](https://learn.greeks.live/wp-content/uploads/2025/10/Reflective-Quantum-Resonator-Assembly-Modeling-Decentralized-Autonomous-Organization-Governance-Mechanism.webp)

ECNs prevent front-running through strict, automated price-time priority matching and transparent display of the best available prices.

### [How Do ZK-Rollups Improve Transaction Throughput on Ethereum?](https://learn.greeks.live/path/how-do-zk-rollups-improve-transaction-throughput-on-ethereum/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Do ZK-Rollups Improve Transaction Throughput on Ethereum?](https://learn.greeks.live/wp-content/uploads/2025/10/Cryptographic-Atomic-Custody-Orbits-a-Singular-Black-Hole-Derivative-Settlement-Node.webp)

ZK-Rollups batch thousands of off-chain transactions and submit a single cryptographic proof of validity on-chain, drastically increasing throughput.

### [In Options Trading, How Does Transaction Speed Relate to PoW Difficulty?](https://learn.greeks.live/path/in-options-trading-how-does-transaction-speed-relate-to-pow-difficulty/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![In Options Trading, How Does Transaction Speed Relate to PoW Difficulty?](https://learn.greeks.live/wp-content/uploads/2025/10/Close-Up-View-of-a-High-Frequency-Trading-Sensor-Interface-for-Automated-Options-Hedging.webp)

Uncertainty in transaction speed, caused by slow difficulty adjustment to hash rate changes, negatively impacts high-speed options trading strategies.

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**Original URL:** https://learn.greeks.live/learn/why-is-a-high-transaction-throughput-challenging-for-pow-networks/
