A recent report by Steven Pu, co-founder of Taraxa, a layer-1 blockchain, reveals a significant gap between claimed and actual blockchain performance. The study, which analyzed 22 networks using data from Chainspect, found that theoretical transactions per second (TPS) are overstated by an average of 20 times compared to real-world results. Pu introduces a new metric, TPS per dollar spent on a validator node (TPS/$), to measure cost-efficiency rather than just raw speed. The report suggests that many blockchains require expensive hardware for modest transaction rates, challenging claims of scalability and decentralization. Pu's findings indicate that the industry's focus on high TPS can mislead stakeholders, and the TPS/$ metric could shift how developers assess networks for practical use cases. The report emphasizes the importance of relying on verifiable on-chain performance metrics rather than whitepaper hype. This revelation could impact investment and development decisions, particularly in decentralized finance and supply chain use cases, by emphasizing the need for reliable performance rather than just high theoretical speeds.



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