A report by Steven Pu, co-founder of Taraxa, highlights a significant gap between theoretical and actual blockchain performance, which may affect perceptions of their efficiency.
Blockchain Performance Report
The study analyzes 22 networks using Chainspect data and finds that theoretical transactions per second (TPS) are overstated by an average of 20 times compared to real-world results. This discrepancy stems from lab-based metrics that do not match live mainnet data. The report introduces a new metric: TPS per dollar spent on a validator node (TPS/$), aiming to evaluate cost efficiency instead of just raw speed. Only four networks achieved double-digit TPS/$ ratios.
Challenges of Blockchain Scalability
Pu believes this shows the need for costly hardware for modest transaction rates. The report notes that many blockchains face challenges with scalability and decentralization. High theoretical TPS often fails to materialize, and TPS/$ metrics could change how networks are assessed for practical uses, such as payments or supply chain tracking. Pu mentions that the max observed mainnet TPS is valuable as it excludes transactions that could unfairly inflate the ratings, such as voting transactions.
Taraxa's Push for Transparency
Taraxa, a proof-of-stake layer-1 blockchain focused on audit logging, frames this as a wake-up call. Steven Pu, a Stanford-educated entrepreneur, urges reliance on verifiable mainnet data over whitepaper promises. This occurs as the crypto space contends with adoption hurdles, where inflated statistics might mislead investment and development decisions. This shift towards focusing on cost-efficient metrics could redefine how blockchain sustainability is evaluated, emphasizing networks that offer not just high speed but also practical value.
The new Taraxa report underscores the need for transparency and the use of verifiable data for assessing blockchain performance. The TPS/$ metric could play a key role in changing approaches to scalability and reliability, particularly important for use in finance and logistics.
