Blockchain Performance Metrics: Moving Beyond Misleading Claims
The metrics used to measure outcomes can be misleading when evaluating blockchain performance. As more blockchain networks emerge, the public needs clear, efficiency-focused metrics, rather than exaggerated claims, to differentiate between them.
In a recent interview with BeInCrypto, Taraxa Co-Founder Steven Pu highlighted the challenges in accurately comparing blockchain performance metrics. Many reported figures rely on overly optimistic assumptions rather than evidence-based results, leading to a wave of misrepresentation in the industry. To address this issue, Pu proposed a new metric called TPS/$.
Why Does the Industry Lack Reliable Benchmarks?
With the proliferation of Layer-1 blockchain networks, the need for clear differentiation based on performance metrics has become crucial. Developers often tout the speed and efficiency of their blockchains, but reliable benchmarks for real-world efficiency are still lacking. Misleading performance figures saturate the market, making it difficult to assess true capabilities.
Pu emphasized how some projects manipulate TPS metrics for marketing purposes, painting a rosier picture of their blockchain performance than what may be achievable in real-world scenarios.
Examining the Misleading Nature of TPS
Transactions per second (TPS) is a commonly used metric to gauge a blockchain network’s transaction processing capabilities. However, it can be misleading as it often oversimplifies a network’s overall performance. Pu explained that extreme claims on single metrics like TPS may come at the expense of decentralization, security, and accuracy.
The Significant Discrepancy Between Theoretical and Real-World TPS
Pu conducted a study to compare the maximum theoretical TPS of blockchain networks with the actual TPS observed on their mainnets. The results showed a significant 20-fold gap between theory and reality, highlighting the inflated nature of some performance metrics in the industry.
Introducing TPS/$: A More Balanced Metric?
In response to exaggerated metrics, Pu and his team developed TPS/$, a metric that factors in the verifiable TPS achieved on a network’s live mainnet and the monthly cost of a single validator node. This metric aims to provide a more balanced assessment of performance while considering hardware efficiency.
Permissioned vs. Permissionless Networks: Which Fosters Decentralization?
Pu underscored the importance of distinguishing between permissioned and permissionless networks to gauge decentralization. Permissioned networks, controlled by a central entity, may compromise decentralization, whereas permissionless networks allow for broader participation.
State-Sharding vs. Single-State: Understanding Data Unity
Pu discussed the efficiency implications of state-sharded networks compared to single-state networks. While state-sharding can increase capacity, it may lead to longer finality latencies. Projects should focus on building truly integrated and scalable architectures rather than simply replicating their networks.
What Fundamental Shifts Does Blockchain Evaluation Need?
Pu’s insights highlight the need for standardized and transparent benchmarks in the blockchain industry to enable informed decision-making and drive genuine progress. Moving away from hype-driven narratives towards objective measurements will be crucial as the industry continues to evolve.
By adopting reliable performance metrics and transparent evaluation criteria, the blockchain industry can move beyond misleading claims and towards a more mature and sustainable future.