Transaction Processing Speed (TPS)

Transaction Processing Speed (TPS) refers to the number of transactions that a blockchain network can process per second. It is a crucial metric for determining a blockchain’s scalability and efficiency. For example, Bitcoin has a relatively low TPS of around 7 transactions per second, while newer blockchains like Solana claim to process over 50,000 TPS. Faster TPS allows for more transactions in less time, making the network more efficient for users and applications. However, higher TPS may require trade-offs in decentralization or security.