Blockchain Throughput Is Overestimated by 75% – Taraxa Report

Theoretical throughput across 22 chains is overestimated by an average of a whopping 75.46% compared to realized performance, according to new research from Steven Pu, Co-Founder of the Layer-1 blockchain Taraxa, using data from Chainspect.

Blockchain throughput refers to the block size and the time required to confirm a transaction within that particular block. It concerns the rate of how fast a blockchain processes transactions. This is typically expressed in transactions per second (TPS).

Pu’s study looked at the cost-efficiency of 22 blockchains, analyzing the real-world cost of running a validator node against factual mainnet throughput.

The study found “a striking gap” between theoretical performance numbers and real-world results. Projects overstate theoretical throughput by an average of 20 times. Per the study:

“This means that TPS figures, often cited in whitepapers and marketing materials, vastly exceed what is achievable under real-world conditions.”

Furthermore, only 4 out of the 22 observed blockchains achieve a double-digit TPS/cost ratio. The study explains that this emphasizes that most networks require high expenditures to reach modest transaction rates.

However, “many networks fall short” when the real cost of running a node is considered. Additionally, this shows that “performance is not always backed by cost efficiency.”

Source: Taraxa

Meanwhile, the “significant discrepancy” suggests a major issue for blockchain developers, investors, and users, Pu writes. They may be basing all their decisions, big and small, on figures achievable only in a controlled test environment.

Pu commented that the research shows “that many networks require expensive hardware just to achieve modest transaction rates.” This is “neither technically impressive nor decentralized.”

He added that the industry should focus on verifiable data from live networks. This way, it “can shift the conversation toward meaningful performance metrics that actually impact usability, cost-efficiency, and decentralized adoption.”

Pragmatic Approach Leads to Transparency

The press release emphasizes that Pu’s research is, in fact, a call to action.

Blockchain projects have so far relied on inflated performance metrics that fail under real-world conditions. The report notes that blockchain performance reports often rely on idealized scenarios with private testnets, not public mainnets. They also include specialized hardware, and “unrealistic assumptions” that inflate TPS figures.

“This results in performance claims that look impressive on paper but do not hold up in practice,” Pu writes.

Source: Taraxa

Taraxa suggests moving to cost-efficiency and observing mainnet performance as a new standard for evaluating blockchain scalability.

Pu’s approach includes measuring transactions per second seen on the mainnet per dollar spent on a validator node (TPS/$). This shifts the focus from theoretical throughput to cost-adjusted efficiency.

The approach produces figures by dividing the observed mainnet throughput by the monthly cost of a single validator node, the study notes. This way, developers, investors, and users can access data that shows factual network sustainability and scalability.

“Investors, developers, and users deserve transparency, Pu says. “The blockchain industry has long been obsessed with theoretical performance figures.” However, numbers from a lab “mean little if they can’t be replicated in real-world conditions,” he warns.

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