Transactions Per Second (TPS)

Transactions per second (tps) is a metric used to calculate how many transactions a blockchain can process in a second. It is calculated using the below formula:

(Block Size/Transaction Size) / Block Time = Transactions Per Second

Note that a high amount of transactions per second does not necessarily result in a better blockchain. Referencing the blockchain trilemma, to some degree, projects may need to sacrifice decentralisation and security to achieve higher transactions per second through scalability.

Key Takeaway

Transactions per second, also known as ‘tps’, measures the number of transactions a network can execute in one second.

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