What Is TPS (Transactions Per Second)?
Also known as: Transactions Per Second, Transaction Throughput, Throughput
In short
TPS (Transactions Per Second) is a metric showing how many transactions a blockchain network or payment system can process per second. It is used to compare network scalability, but it does not fully reflect performance on its own.
A blockchain's TPS depends mainly on its block size or per-block gas limit, its block time and the average transaction size. Bitcoin's base layer can process only a few transactions per second because of its roughly 10-minute block time and limited block capacity. Networks aiming for higher TPS turn to methods such as shorter block times, parallel transaction execution or nodes that require more powerful hardware.
TPS comparisons should be interpreted with care. The theoretical maximums announced by projects are usually measured under laboratory conditions and with simple transfers; the average number of transactions on the live network may be much lower. In addition, a token transfer and a complex DeFi transaction do not consume the same resources. Finality, the time it takes for a transaction to become irreversible, and the network's level of decentralization are at least as important as TPS.
The scalability trilemma explains that increasing TPS often requires sacrificing security or decentralization. For this reason, networks such as Ethereum prefer to increase capacity through Layer 2 solutions, while structures such as the Lightning Network move part of Bitcoin payments off-chain.
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