Major Blockchain Throughput Overestimated by 75%

A newly released report from Taraxa has unveiled that leading blockchain projects tend to exaggerate their throughput claims by a substantial margin. The analysis shows a stark contrast between the theoretical transactions per second (TPS) advertised by networks like Sonic, Solana, and Aptos and the actual maximum TPS observed on their respective mainnets.

This discrepancy highlights a considerable overestimation of network efficiency and performance across these platforms.

Understanding Overestimated Efficiency in Blockchains

Taraxa, a layer-1 blockchain, has conducted a thorough analysis of several prominent blockchain networks. The findings indicate that while many projects boast about advancements in transaction throughput, these assessments are often carried out under optimal conditions. Taraxa's goal was to compare the most ambitious claims with performance metrics under standard operational settings.

“Investors, developers, and users deserve transparency. The blockchain industry has long been obsessed with theoretical performance figures, but lab-generated numbers mean little if they can't be replicated in real-world conditions,” said Steven Pu, co-founder of Taraxa, in an exclusive press release.

The study used a metric referred to as “TPS per dollar,” which compares the number of transactions a blockchain can handle against the operational costs of running a validator node. This provides a clearer picture of how these platforms perform in reality.

Case Studies of Blockchain Throughput

In their analysis, Taraxa considered the peak throughput recorded on various blockchain systems while excluding permissioned and sharded networks. They also omitted specific transactions, such as voting activities, to avoid inflating the data.

The results were startling, with platforms like Sonic (previously known as Fantom) reporting throughput figures more than 100 times their actual capabilities. Overall, the average overestimation across the industry stood at an alarming 20 times. The environment of fierce competition in the layer-1 blockchain sector undoubtedly creates an incentive for such inflated claims.

“Our research also indicates that numerous networks require costly hardware to achieve merely average transaction rates, which does not display technical prowess or decentralization. By focusing on verifiable data from live networks, we can reshape the dialogue toward meaningful performance metrics,” Pu elaborated.

Notably, when comparing TPS to their respective dollar costs, it was found that Solana incurred the highest expenses. Nonetheless, it managed to utilize resources effectively, achieving commendable throughput levels. Taraxa boasted of having the best ratio across the industry, indicating a competitive motive behind their study and methodology.

Despite any possible self-promotional intentions, Taraxa's findings indicate a trend of significant overstatements regarding blockchain throughput across the entire sector. The company has also been analyzing critical areas within the Web3 landscape, including the burgeoning AI industry, and believes that their insights hold substantial value.

It is hoped that this revealing data will prompt blockchain projects to provide more genuine reporting moving forward.