## Blockchain Performance: Why Are Theoretical and Actual TPS So Different?

**What is TPS and why is it important?**

TPS (Transactions Per Second - the number of transactions per second) is a crucial metric for evaluating a blockchain network's processing capacity. It indicates how many transactions a network can handle in one second. However, this number is often misunderstood due to the significant gap between the publicly announced theoretical capacity and the actual performance experienced by users daily.

**Announced figures vs. reality**

Looking at the published data, Bitcoin is considered "slow" with only 7 TPS, while Ethereum is advertised to handle 2,000 TPS, XRP claims 1,500 TPS, and Solana boasts up to 40,000 TPS. Bitcoin Cash sits in the middle with 175 TPS.

However, when verifying real-world data:
- **Bitcoin** still maintains around 7 TPS, but the Lightning Network has significantly increased scalability opportunities
- **Ethereum** processes about 17 TPS on the main layer, but Layer 2 solutions can boost this number to 34,000 TPS
- **Solana** operates with a real-time performance of approximately 830 TPS, although theoretically it can reach 65,000 TPS

**Why does this discrepancy exist?**

The gap between theory and reality stems from multiple factors. Announced figures are often based on optimal conditions—excluding network congestion, transaction complexity, or security constraints. Conversely, real-world performance faces challenges such as block size, confirmation times, and decentralization requirements.

This is especially important for Bitcoin and Ethereum, as they prioritize decentralization and security over raw transaction speed. That’s why scalability solutions like Lightning Network (for Bitcoin) and Layer 2 technology (for Ethereum) are developed—they provide a way to increase throughput without compromising the security of the main layer.

**What does this mean for users?**

When choosing a blockchain, looking solely at theoretical TPS is not enough. Users should consider actual TPS, average confirmation times, transaction costs, and the level of decentralization. A network with higher TPS but more centralization might not be the best choice compared to a blockchain with lower performance but full decentralization.