Understanding the Real Transactions Per Second (TPS) Data of Cardano and Solana
Justin Bons, the founder and CIO of Cyber Capital, Europe’s oldest cryptocurrency fund, recently highlighted concerns about misleading TPS metrics in Solana (SOL) and Cardano (ADA) on X, emphasizing the importance of accurate reporting in the blockchain industry.
The Misleading TPS Metrics
- Bons flagged Solana and Cardano as the primary culprits for presenting exaggerated TPS figures to investors, deviating significantly from industry standards.
- SOL misleads investors by a factor of 6.5, while ADA does so by 26.5, showcasing a blatant disregard for standardized TPS reporting.
Cardano and Solana: Real Numbers Unveiled
Breaking down Solana’s TPS claims, Bons reveals that while it advertises a maximum theoretical TPS of 65,000, the network’s practical capabilities are substantially lower at around 50,000 TPS, due to computational constraints.
Contrastingly, Cardano’s touted TPS of 477 is debunked by Bons, who calculates an actual TPS of a mere 18 based on the network’s block and transaction configurations.
Critique of Transaction Throughput Calculations
- Bons criticizes both networks for inflating their TPS figures by counting multiple outputs as separate transactions, artificially boosting throughput statistics.
- He proposes a new metric, Outputs Per Second (OPS), as a more accurate measure of a network’s true capacity.
Practical Usage versus Marketed Claims
Bons substantiates his arguments with empirical data, indicating that Solana processes approximately 739 actual TPS, while Cardano’s usage lags significantly behind at a mere 0.4 TPS.
He warns that misleading TPS metrics can not only misguide investors but also deter potential users and developers from engaging with these platforms, potentially hindering their adoption.
Call for Transparency and Accuracy
Concluding his analysis, Bons calls upon the blockchain community to adhere to higher standards of transparency and accuracy in reporting performance metrics, advocating for consistent and comparable TPS metrics across all platforms to facilitate informed decision-making.
The Impact on the Crypto Market
- Exaggerated TPS claims may erode trust in these platforms and impede their broader adoption.
- Bons underscores the significance of realistic TPS reporting to prevent misaligned expectations and foster trust within the blockchain ecosystem.
Hot Take: Setting the Record Straight on TPS Metrics
As an investor or enthusiast in the cryptocurrency space, it is crucial to scrutinize TPS data and demand accurate reporting from blockchain projects to ensure transparency and credibility in the industry.
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