Blockchain pioneer from Taraxa advocates for introducing a novel evaluation standard to combat deceptive performance declarations in the blockchain sector.
In a nutshell, the blockchain performance landscape can be deceiving, and it's crucial to have clear efficiency-focused metrics to differentiate networks. Taraxa Co-Founder Steven Pu believes that the industry is swamped with inflated performance claims, which conceal the real capabilities of various projects. To combat this, Pu suggests a new metric named TPS/$, which aims to offer a more transparent look at blockchain performance.
The market is inundated with an overwhelming number of Layer-1 blockchain networks, each promoting their speed and efficiency. However, reliable benchmarks for real-world efficiency have yet to emerge. Instead, the industry relies on temporary waves of hype-driven popularity to differentiate networks.
According to Pu, the blockchain industry is riddled with misleading performance figures, and some projects artificially inflate their metrics to boost their appeal. For instance, some projects exploit the Transactions Per Second (TPS) metric, using it as a marketing tactic to sound efficient under ideal conditions.
Decentralized networks are complex systems, but the market tends to oversimplify and oversell one specific aspect, ignoring the whole picture. Projects that rely too heavily on TPS may have compromised decentralization, security, and accuracy.
Pu conducted a report to demonstrate the gap between theoretical and practical TPS. He discovered that, on average, there is a 20-fold gap between theoretical metrics and actual mainnet TPS for 22 permissionless and single-shard networks observed. This mismatch highlights the need to exclude metrics that are based solely on assumptions or lab conditions.
To counter these exaggerated metrics, Pu developed TPS/$, a metric that assesses performance based on real-world TPS achieved on a network's live mainnet while considering hardware efficiency. This metric aims to provide a more accurate evaluation of blockchain performance.
Pu also emphasized the importance of recognizing whether a network is permissioned or permissionless, believing that a permissioned network is at odds with the philosophy of decentralization. He also pointed out the benefits of understanding whether a network employs state-sharding versus a single-sharded state, as it can reveal much about its latency efficiency.
By understanding TPS/, permissionless networks, state-sharding, and permissioned networks, the blockchain industry can make more informed decisions and drive genuine progress beyond mere promotional claims as it evolves. The industry is gradually moving towards establishing measurable standards for evaluating blockchain performance and security, as demonstrated by initiatives such as standardized architectural categorization, unified compliance metrics, and collaborative research events.
- Steve Pu, the Taraxa Co-Founder, stated that the blockchain industry is filled with inflated performance claims, masking the true capabilities of various projects.
- To combat this issue, Pu proposed a new metric named TPS/$ to offer a more transparent evaluation of blockchain performance.
- The market is flooded with Layer-1 blockchain networks promising speed and efficiency, but reliable benchmarks for real-world efficiency are yet to be found.
- Projects that overemphasize Transactions Per Second (TPS) as a marketing tactic may have compromised decentralization, security, and accuracy.
- Pu's report revealed an average 20-fold gap between theoretical and practical TPS for 22 permissionless and single-shard networks, highlighting the need to exclude metrics based solely on assumptions or lab conditions.
- To provide a more accurate assessment of performance, TPS/$ evaluates real-world TPS achieved on a network's live mainnet while considering hardware efficiency.
- Understanding TPS/, permissionless networks, state-sharding, and permissioned networks is critical for the industry to make informed decisions and drive progress beyond promotional claims, as it continues to establish measurable standards for evaluating blockchain performance and security.
