Transaction throughput quantifies the number of transactions a blockchain network can process within a given period, typically measured in transactions per second (TPS). Higher throughput indicates a network’s capacity to handle a greater volume of activity efficiently. This metric is crucial for assessing a network’s scalability and performance.
Context
Transaction throughput is a critical metric discussed in relation to blockchain scalability and user experience. News reports frequently compare the TPS capabilities of different blockchain networks, particularly when assessing their suitability for widespread adoption and high-frequency applications. Current debates revolve around the trade-offs between throughput, decentralization, and security, as well as the effectiveness of various scaling solutions in increasing network capacity.
The $400 billion swap volume milestone on Uniswap validates Arbitrum's L2 architecture as the definitive capital-efficient hub for high-throughput DeFi and RWA tokenization.
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