What is TPS? The Truth Behind Transactions Per Second

In the marketing brochures of every new Layer 1 and Layer 2 blockchain, one number is always printed in the largest font: TPS. "100,000 TPS!" "Infinite Scalability!" "Fastest Chain on Earth!"

Transactions Per Second (TPS) has become the standard benchmark for blockchain speed. But like horsepower in cars or megapixels in cameras, a single number rarely tells the whole story. At RollupRadar, we believe in looking beyond the vanity metrics to understand the real performance of decentralized networks.

Defining TPS: The Basics

At its core, TPS is a simple calculation:

TPS = (Number of Transactions in a Block) / (Block Time in Seconds)

If a blockchain produces a block every 2 seconds, and that block contains 100 transactions, the TPS is 50. It represents the throughput of the network—how many distinct user actions the system can finalize in a single second.

The Great Discrepancy: Max TPS vs. Real TPS

There is often a massive gap between the theoretical TPS claimed by a project and the real TPS observed on the mainnet. This discrepancy is usually due to two factors:

• Theoretical Max TPS: This assumes every transaction is a simple token transfer (the smallest possible transaction) and that the network is running at 100% capacity with perfect propagation.
• Real TPS: This is the actual number of transactions processed based on real user demand, which includes complex smart contract interactions (swaps, mints, votes) that take up more block space.

Exclusive Data: The Reality Check

Our analytics engine at RollupRadar constantly monitors the pulse of the ecosystem. In a recent stress test analysis conducted in late 2024, we compared marketed speeds against reality.

However, during the "Inscription Wave" of November 2024, we saw a glimpse of true peak performance:

• Network A (ZK-Rollup): Claimed 2,000 TPS. Peaked at 1,850 Real TPS for 10 minutes.
• Network B (Optimistic): Claimed 4,000 TPS. Peaked at 620 Real TPS before network congestion spiked fees.

This data highlights that while the engine might be capable of high speeds, the road conditions (network congestion, data availability costs) often limit the actual velocity.

Why TPS is Not Enough: Latency and Finality

Imagine a bus that can carry 1,000 people (high throughput/TPS) but only leaves the station once every hour (high latency). Is that "fast"?

For a user, Time to Finality is often more important than TPS. This is the time it takes from clicking "Confirm" in your wallet to the moment the transaction is irreversible.

• High TPS, Slow Finality: You send a payment. The network processes 10,000 other payments that second, but you have to wait 5 minutes to be sure yours won't be rolled back.
• Low TPS, Fast Finality: The network only processes 10 payments a second, but yours is confirmed instantly.

Modern Rollups are striving for the holy grail: High TPS and Sub-second Finality. This is achieved through "soft confirmations" by sequencers, giving users an instant UX while settling securely on Ethereum L1 later.

The Impact of "Spam" on TPS Metrics

Not all transactions are created equal. Some networks artificially inflate their TPS numbers through "spam" or non-economic transactions. This can include:

1. Bot Activity: Arbitrage bots spamming thousands of failed transactions.
2. Oracle Updates: High-frequency price updates that clog the chain but don't represent user adoption.
3. Wash Trading: Wallets sending tokens back and forth to farm airdrops.

At RollupRadar, we filter our "True TPS" metric to exclude failed transactions and identify bot-heavy patterns, giving you a clearer picture of genuine economic activity.

Conclusion: Look at the Dashboard, Not the Billboard

TPS is a useful metric, but it is a starting point, not a conclusion. When evaluating a blockchain, look for Sustained Real TPS over time, not just the theoretical peak printed on a whitepaper.

As the ecosystem moves towards modular blockchains and Layer 3s, the aggregate TPS of the "Superchain" or "Hyperchain" ecosystem is projected to surpass 100,000 by 2026. But remember: speed means nothing without security and decentralization.