Blocks Per Second vs. Transactions Per Second: Understanding Cryptocurrency Metrics

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BPS vs. TPS: Core Differences

Blocks Per Second (BPS) measures how many blocks a blockchain adds each second. It reflects network speed and scalability—higher BPS means faster transaction confirmations and increased throughput.

Transactions Per Second (TPS) counts the number of transactions processed per second. While TPS indicates practical utility for high-volume applications, BPS is foundational—transactions can’t be confirmed without block inclusion (per Nakamoto consensus).

Analogy:


Why BPS Matters More

  1. Security & Efficiency: Higher BPS means more frequent transaction commits, enhancing network robustness.
  2. Decentralization: Fast block rates lower mining ROI barriers, encouraging solo/miner participation. Example: Kaspa supports ~90M monthly profitable solo miners.
  3. Variance Reduction: High BPS stabilizes block intervals, ensuring consistent miner rewards.

Note: Sharded systems dilute BPS benefits, as miners commit to specific chains.


TPS: The Fee Dynamo

For pool miners, TPS directly impacts fees:

Example: If Kaspa produces 9000x more blocks than Bitcoin (same size), unique transactions scale ≥6000x.


FAQ Section

Q1: Can TPS exist without BPS?
No—transactions require block confirmation. BPS enables TPS.

Q2: How does BPS aid decentralization?
By making mining profitable for small-scale participants via faster rewards.

Q3: Why don’t all chains prioritize BPS?
Trade-offs exist (e.g., sharding splits focus); single-state architectures (like Kaspa’s BlockDAG) optimize BPS.


Key Takeaways

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References:

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