Ethereum News Today: Blockchain Struggles with 14 TPS vs. TradFi's 24,000 as Speed Gap Stalls Adoption

Blockchain’s ability to challenge traditional finance (TradFi) hinges on overcoming a critical barrier: speed. Despite its foundational promise of decentralization, blockchain networks like Ethereum and Bitcoin lag far behind centralized systems in transaction throughput and latency. Ethereum processes approximately 14 transactions per second (TPS), while Visa handles 24,000 TPS, and the NASDAQ averages 20,000 TPS [1]. Similarly, Bitcoin’s 10-minute block time and 10 TPS render it incompatible with the real-time demands of modern finance [1]. These gaps underscore why users continue to favor TradFi’s speed and efficiency, even if it means accepting its opacity and hidden fees.

The trade-off between decentralization and performance is stark. While blockchain’s transparency and trustless design appeal to crypto-native communities, most users prioritize functionality. High gas fees and sluggish transaction speeds on Ethereum, for instance, deter widespread adoption [1]. Even performance-focused chains like Solana—capable of 3,000 TPS—fall short of centralized benchmarks and rely on infrastructure that lacks composability or global scalability [1]. Hyperliquid, a centralized trading platform, saw a 50% surge in May 2025 trading volume, according to DeFiLlama, reflecting growing demand for speed over ideological purity [1]. Yet, such platforms remain limited in their ability to support a broader transition to digital assets.

To bridge this gap, blockchain projects are exploring hybrid solutions. Techniques like batching transactions, off-chain order books, and optimized state differences aim to reduce on-chain load and gas costs [1]. However, achieving Web2-grade speed without sacrificing decentralization remains an unresolved challenge. The article argues that the next financial revolution will be led by platforms combining the best of both worlds: the trust and openness of blockchain with the speed and cost-efficiency of centralized systems. Until then, the debate over “DeFi vs. TradFi” or “centralization vs. decentralization” will persist.

The path forward requires innovation that aligns with user needs. As Mike Cahill, co-founder of Douro Labs, notes, history favors the fastest networks [1]. If blockchain developers can deliver sub-second transactions at minimal costs, they may finally displace TradFi’s dominance. Until then, traditional finance’s “faster rails” will continue to anchor financial systems.

Source: [1] [Blockchain won’t win until it outruns TradFi] [https://cryptoslate.com/blockchain-wont-win-until-it-outruns-tradfi/]