Another back-to-basis-day CAPPIES! There are tons of new words and various terminology used in the crypto space, its very easy to be lost in all the crypto jargon. Sometimes, its good to take a step back and truly understand what these terms mean and/or represent.
Throughput is a measure of how many actions are completed within a given time frame. In the blockchain space, transaction throughput refers to a rate of how fast a blockchain processes transactions, which is commonly expressed in transactions per second (TPS).
Blockchain critics frequently point out that public blockchains such as Bitcoin, which averages around 3 transactions per second (tps), and Ethereum, which has an upper boundary around 20 tps, pale in comparison to centralized platforms such as PayPal (450 tps) and Visa (56,000 tps). Do be careful and not fall into such linear thinking.
There are also many other factors that affect throughput include a blockchain’s block size, traffic, consensus mechanisms and complexity of transactions.
For example, certain blockchain transactions can be more complex than others, which is largely determined by the code of smart contracts. This is vastly different from your typical credit card swipes, which are relatively simple and identical.
As with all things in life, speed is NOT everything. Thats all for today cappies!
