What is Transactions per second (TPS)

TPS is the rate at which transactions are processed. Within a blockchain, transactions take a longer time to be verified than using traditional channels. This is referred to as the scaling issue, and many solutions have emerged to partially address it.

On the Bitcoin blockchain, one block is generated around every 10 minutes. This translates to roughly 4.6 transactions per second.

Ethereum has employed several scaling solutions such as layer 2 scaling, rollups, sidechains, and plasma chains. Currently, the Ethereum blockchain can process around 30 transactions per second.

Visa, on the other hand, can process up to around 1700 transactions per second.

Moving forward, blockchain networks would need to introduce more solutions as adoption grows further whilst maintaining the security of the system. Scaling solutions would also need to retain the benefits of decentralization.