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What is Throughput

The quantity of actions that are finished in a certain amount of time is referred to as throughput. Transaction throughput, which is often represented in transactions per second (TPS), but can also be expressed in minutes (TPM) or hours, is a measure of how quickly a blockchain processes transactions (TPH).

The transaction throughput of a decentralized protocol is determined by the consensus algorithm used by a blockchain platform. For instance, a proof-of-stake (PoS) network like Cardano has a higher throughput than a proof-of-work (PoW) blockchain like Bitcoin. The block size, traffic, and complexity of transactions on a blockchain are additional elements that influence throughput.


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