Everything has a unique set of characteristics that can use to assess its performance. It could be something as simple as a car or as complex as the blockchain. These factors also aid in comparing two or more blockchains to determine which is best for developing projects, trading coins, or minting NFTs. So, let’s look at how to measure blockchain performance.
1. Transactions Per Second
Anyone familiar with the blockchain industry would agree that one of the most important metrics is Transactions per Second (TPS). It simply refers to the number of transactions completed in one second. TPS determines a blockchain’s data processing capacity and scalability requirements. For greater clarity and better results, the number of transactions submitted to the blockchain and those recorded in the ledger is counted separately in this case.
Remember that many other factors exist, so a blockchain with a high TPS does not automatically make it better than other options. For example, Bitcoin, one of the most popular blockchains, has a low TPS in the 5-10 range but thousands of nodes worldwide.
2. Transaction Latency
Transaction latency is the time between submitting a transaction and accepting or rejecting it. When a transaction is authorized, the results are immediately visible and usable on the network.
This metric, which compares blockchains based on how quickly they can reflect transactions, is critical in every way.
3. Transaction Throughput
Transaction throughput is the amount of time it takes to add valid records to blocks. The elapsed time calculation begins only after a record has been accepted; rejected records are not considered.
To calculate Transaction Throughput, divide the total number of records added to the blocks by the whole time in seconds.
4. Energy Efficiency
While not directly a network performance metric, energy efficiency plays a vital role given the global energy crisis and the growing global agreement on energy conservation. A blockchain requires energy to function, primarily to validate, process, and store transactions. The consensus technique employed here significantly affects the amount of energy consumed.
While most significant networks use the more energy-intensive Proof of Work (PoW) model, some newer blockchains rely on the more complex and energy-efficient Proof of Stake (PoS) or Proof of Authority (PoA) models. So, the next time you build a project, consider the consensus process before deciding on a blockchain.
5. Number of Validators
Transactions are validated by validators, who are compensated for their efforts. These validators frequently dedicate a computer to maintaining the blockchain’s integrity. When a transaction is confirmed, it is recorded on the blockchain’s ledger.
Every transaction started in a block for verification is included in the validators. Once a block has been completed and placed on the blockchain, it can no longer change. Validators are in charge of everything. As a result, the network performs better as the number of validators increases.
6. Block Time
Block time takes validators or miners to validate the transactions in a block before moving on to the next one. The total time between these operations is used to calculate the block time. Miners and validators are compensated in cryptocurrency for their efforts.
Remember that every new block added to the blockchain stores a reference to the previous block. As a result, changing or removing blocks from the blockchain is impossible because it would be easily detected. You can easily compare and select a blockchain from hundreds of options based on these six critical metrics for how to measure blockchain performance. Contact SmartOSC if you need full-service blockchain development solutions.
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