The number of transactions processed by a blockchain network within a second is called Transactions Per Second (TPS). TPS is one of the most popular terms in the crypto industry, especially when the scalability of a network is being discussed. In order to calculate the TPS of a network, its block size, block time, and average transaction size must be known.
Block time is the average time required by the blockchain network to create a new block in the chain. For Bitcoin, the block time is about 10 minutes. The block size in the blockchain network is the size of each block in the network. For Bitcoin, the block size is 1 MB. As far as it’s concerned, the average transaction size varies for every blockchain network and needs to be calculated. At the time of writing, the TPS of Bitcoin is 7. The TPS for Bitcoin is quite low as compared to other crypto assets. Ethereum as of now can carry out 20 transactions per second. However, with its new upgrade, it will be able to perform a lot more transactions in a second.
When we compare these numbers with the existing traditional system, they are far away from the current TPS achieved by companies like Visa and Mastercard. Therefore, it’s a long way till crypto assets completely replace the traditional method of payments.