System Throughput

Definition ∞ System throughput measures the rate at which a system processes successful operations or data units over a given period. It quantifies the amount of work completed by a computer system, network, or process within a specific timeframe. Higher throughput generally indicates greater efficiency and capacity for handling tasks. This metric is a key indicator of performance in various computational environments.
Context ∞ For blockchain networks, system throughput is a critical metric often discussed in crypto news regarding scalability and transaction capacity. Low throughput can lead to network congestion and increased transaction costs, impacting user adoption. Many new blockchain protocols aim to significantly increase their system throughput to compete with traditional financial systems. Advancements in sharding and layer-2 solutions specifically target improving this performance aspect.