What is throughput or network throughput in blockchain crypto?
If you have been reading up about blockchain protocols, you must have come across the word throughput often. It is often used as a metric or measurement of some kind. But what does it really mean? Let’s explore.
Throughput or network throughput is a metric that measures the average rate at which data messages are successfully delivered and arrived at the intended destination. The higher the throughput means more data is produced and delivered at a specified period of time.
In crypto terms, the throughput metric is referred to as transaction per second or TPS in short. It is often used as a comparative measurement between blockchain protocols. Hence, investors in general look at throughput for indication on whether it is fast by comparing it to Bitcoin, Ether or any traditional centralized finance products.
