Blockchain Speed Claims Overestimated by 75%

Blockchain networks have long been praised for their speed and efficiency, but a recent study by Taraxa has revealed that many of these claims may be overestimated by as much as 75%. The study found that popular networks like Solana, Aptos, and Sonic often report transaction speeds that are 20 times higher than their real-world performance.

The study, conducted by Taraxa, a Layer-1 blockchain, analyzed the transaction per second (TPS) capabilities of various blockchain mainnets. It found a significant gap between the theoretical and actual TPS figures reported by these networks. Many projects base their performance claims on ideal test environments, which often fail to reflect the actual network conditions where validator node costs and technical limitations impact efficiency.

Taraxa co-founder Steven Pu criticized the industry's reliance on lab-generated figures, arguing that real-world performance should be the standard. To measure this, Taraxa introduced the "TPS per dollar" metric, which compares a network's transactions per second to the cost of running a validator node. This method provides a clearer picture of blockchain efficiency, revealing that many networks require expensive hardware to achieve relatively modest transaction speeds.

The study excluded permissioned and sharded networks, as well as certain transaction types like voting transactions, which can artificially boost TPS figures. When comparing actual throughput to publicized claims, the results showed systematic overestimation across the industry. Sonic stood out with the largest discrepancy, overstating its TPS by more than 100 times. On average, most networks exaggerated their speeds by a factor of 20.

This kind of marketing distortion is fueled by fierce competition in the Layer-1 blockchain space, where high-performance claims attract investors and developers. However, the study also found that some networks demand high-end hardware just to deliver basic transaction speeds, raising concerns about decentralization and accessibility.

The study examined cost efficiency, revealing that Solana had the highest hardware expenses but effectively used these resources to maintain strong throughput. Meanwhile, Taraxa claimed to have the best efficiency ratio in the industry, though its involvement in the study raises questions about its objectivity.

Despite potential self-promotion, the findings indicate that blockchain throughput across the industry is largely inflated. As the industry matures, greater emphasis on verifiable data could push projects to offer more realistic claims, ensuring that users and investors get a clearer picture of network capabilities.