Does Speed Matter in Crypto? (Patreon)

I would argue yes. 

This chart is from the BLOCK RESEARCH - presenting the average transactions per second (TPS) of various blockchain technologies as of October 2023. The TPS is a measure of the number of transactions a blockchain network can process each second and is an important metric for understanding the network's scalability and speed.

1. Solana: At the top, with a significant lead in TPS, demonstrating 238.9 transactions per second,
2. Ethereum: Shows an average TPS of 11.7, which is considerably lower than Solana's. While Ethereum is one of the most popular blockchains and supports a rich ecosystem of decentralized applications, its TPS is limited compared to Solana, which may lead to higher transaction fees and slower confirmations during peak times.
3. zkSync, Arbitrum One, BASE, StarkWare: These are various Layer 2 solutions or alternative blockchains designed to scale the transaction capabilities of Ethereum. They show TPS values ranging from 5.6 to 9.6, which are higher than Ethereum's own TPS, indicating that they are helping to alleviate Ethereum's scalability issues.
4. Optimism, dYdX, Mantle, ImmutableX, Arbitrum Nova: These technologies have lower TPS values ranging from 2.0 to 2.8. They might use different scaling solutions or focus on trade-offs between decentralization, security, and scalability.

THE KEY METRIC IN CRYPTO

The importance of TPS and speed in blockchain technology:

• User Experience: Higher TPS can lead to faster confirmation times for transactions, which improves the user experience.
• Scalability: A higher TPS indicates a network's ability to handle a greater number of transactions, which is crucial for mass adoption.
• Costs: Generally, networks with higher TPS can offer lower transaction fees, as the cost per transaction can be reduced due to the higher volume of transactions processed per second.
• Network Congestion: Blockchains with lower TPS can suffer from network congestion during high demand, leading to slow transactions and higher fees.
• Decentralization vs. Scalability: Some blockchains may sacrifice decentralization for higher TPS, as achieving consensus quickly is easier in a less decentralized environment.
• Use Cases: Blockchains with higher TPS are better suited for applications requiring fast and frequent transactions, whereas those with lower TPS might be more secure and decentralized, making them suitable for different use cases.

Overall, TPS is a crucial metric for blockchain performance, affecting the feasibility and desirability of a blockchain for various applications. However, it's not the only factor to consider; security, decentralization, and the richness of the ecosystem are also very important.