Payments System Throughput

Definition ∞ Payments system throughput measures the number of transactions a payment network can process within a specified time. For blockchain networks, this metric is crucial for scalability and the ability to support widespread adoption. Higher throughput indicates a more efficient and capable system for handling a large volume of digital asset transfers. It is a key performance indicator for network capacity.
Context ∞ The challenge of increasing payments system throughput without sacrificing decentralization or security is a central debate in blockchain development. Solutions such as layer-2 scaling protocols and sharding are actively being researched and implemented. Future advancements are vital for digital assets to compete with traditional payment networks in terms of speed and volume.