What Is TPS in Blockchain? Understanding Transactions Per Second in 2025

In the blockchain and cryptocurrency world, transaction processing speed plays a critical role in determining the performance and scalability of a network. One of the most common metrics used to measure this is TPS (Transactions Per Second). But what is TPS exactly, why is it important, and does a higher TPS always mean a better blockchain?

What Is TPS? Definition and Importance in Blockchain

TPS stands for Transactions Per Second, referring to the number of transactions a system can process each second. In the blockchain context, TPS measures the speed of transaction processing on networks like Bitcoin, Ethereum, Solana, or NEAR.

For instance, if a blockchain has a TPS of 1,000, it means it can validate 1,000 transactions per second. This metric is frequently used to compare the performance of various networks and assess their ability to meet user demands in real-world applications like DeFi, GameFi, or payments.

Why Is TPS Important in Blockchain?

A blockchain with high TPS can:

• Support more users at the same time without congestion
• Provide smooth transaction experiences, especially in real-time apps
• Prevent gas fees from spiking during high demand (like Ethereum in 2021)
• Offer a solid foundation for scaling decentralized applications (dApps)

In contrast, low TPS can lead to delayed confirmations, higher transaction fees, and user frustration. That’s why many next-gen blockchains focus on enhancing TPS to stay competitive.

Comparing TPS Across Leading Blockchains

To better understand what TPS is and how it differs across ecosystems, let’s examine the real-world TPS of major blockchain networks. Each network is designed with unique consensus models and goals, directly influencing their TPS performance. This comparison helps users determine which network suits their needs for dApp development or fast transactions.

Bitcoin (BTC)

• Average TPS: ~7
• Built for security and decentralization
• Not suitable for micropayments or real-time dApps

Ethereum (ETH)

• Current Layer-1 TPS: ~15
• Can scale to 500–2000 TPS via Layer-2s like Arbitrum and zkSync
• Undergoing major upgrades like Danksharding and rollup-centric design

Solana (SOL)

• Theoretical TPS: ~65,000
• Real TPS: 1,500–5,000 (depending on network state)
• Pros: High speed, low fees
• Challenges: Stability and decentralization

NEAR Protocol

• Real TPS: 1,000–3,000
• Nightshade sharding enables linear scalability with more segments

Each blockchain has its own strengths and trade-offs, and TPS is only one of many metrics that determine overall network effectiveness.

Is Higher TPS Always Better?

Not necessarily. High TPS alone doesn’t guarantee a superior blockchain if:

• The network sacrifices decentralization (e.g., centralized validators)
• Security is compromised (e.g., vulnerable to spam or DDoS)
• The network experiences frequent disruptions or rollback issues

This is where the Blockchain Trilemma comes in—balancing TPS, security, and decentralization. Sustainable ecosystems must address all three rather than obsessing over speed alone.

TPS vs. Other Key Metrics

In addition to TPS, several other metrics matter when assessing a blockchain’s efficiency:

• Finality Time: How long before a transaction is irreversible
• Latency: Time between submitting and confirming a transaction
• Throughput vs. Scalability: TPS shows current performance, but not future scalability potential

Therefore, evaluating TPS must be done in the broader context of system design and long-term usability.

What Does TPS Mean for Gate Traders?

On Gate, users can observe transaction performance across multiple blockchains when trading pairs like BTC/USDT, ETH/USDT, SOL/USDT, or NEAR/USDT. For example, traders using Solana benefit from near-instant confirmations thanks to its high TPS.

Gate also supports high-TPS Layer-2 networks like Arbitrum and Optimism, enabling users to save on gas fees and enjoy fast withdrawals. For Web3 builders, Gate offers a powerful testing and launch environment for tokens on various chains with different performance levels.

The Future of TPS in Blockchain (2025 and Beyond)

In 2025, we’re seeing rapid growth in technologies designed to improve TPS, including:

• Modular Blockchains: Splitting execution and data layers for optimal throughput
• ZK Rollups: Scaling Ethereum securely to thousands of TPS
• Dynamic Sharding: Used by NEAR and others to expand capacity with network growth

Even though TPS is a vital metric, future blockchains must emphasize balanced design to handle millions of users while maintaining trust and decentralization.

Conclusion

TPS is a key indicator of a blockchain’s scalability and performance. However, it’s just one piece of the puzzle. Investors should also consider security, network fees, development teams, and real-world use cases before making decisions. Gate is a great platform to experience high-TPS networks, monitor blockchain performance, and explore the latest Web3 scalability innovations. Whether you’re a trader or a developer, understanding what TPS is can help you optimize your strategy and choose the right platform for your goals.