The rivalry between blockchains to demonstrate which one works best has recently been fierce, with each reporting outstanding Transactions Per Second (TPS) numbers. One of the well-known companies on this list is Aptos, who made a great deal out of promising 160,000 TPS. Although it still indicates the blockchain’s ability to process transactions efficiently, the blockchain only reached a peak of 2,107 TPS in November 2022, which is not bad but falls far short of their pre-launch expectations.
However, evaluating blockchain performance involves more than merely identifying the entity with the highest TPS. We shall delve further into the idea of blockchain performance in this essay. To achieve this, however, we must first go back to the fundamentals and explain what a blockchain is, how it operates, and how blockchains can differ significantly from one another in terms of their essential design, making their potential TPS only one component of the jigsaw.
The Anatomy of a Blockchain
Imagine a society where you can carry out transactions without the assistance of institutions like banks or governments. This is the power of distributed ledger technology like blockchain, which eliminates the requirement for confidence in transactions. What makes it called blockchain, then? A blockchain is made up of a series of blocks, each of which contains a group of validated transactions. Even more intriguing is the fact that a network of nodes that cooperate to validate and protect transactions owns and maintains it rather than a single company.
Understanding certain fundamental ideas that underpin blockchain technology is essential if one is to properly appreciate its nature and distinctive offering.
Decentralization
A peer-to-peer network called a blockchain runs without being under the jurisdiction of a centralised entity like a bank or government. Instead, the network is made up of computers or nodes that are geographically dispersed but nevertheless connected to one another. The blockchain is maintained and its transactions are verified by all of the nodes, each of which owns a copy of the blockchain. Blockchain’s decentralised structure makes sure that no single entity has complete control over the network, enhancing its security and openness.
Immutability
A transaction cannot be changed or removed after it has been included in a block and uploaded to the blockchain. As a result, the blockchain becomes an immutable record of every transaction, offering a high level of transparency and trust. Every transaction and incident is recorded, just as in a digital diary, and can always be verified by anyone.
Cryptography
Since it offers the necessary security and protection for the data being exchanged inside the network, cryptography is a crucial part of blockchain technology. The confidentiality of the data, transaction authentication, and system integrity are all achieved in a blockchain through the application of cryptographic techniques. For instance, public-key cryptography generates a digital signature that confirms a transaction’s legitimacy and that it cannot be altered after the network has given it the go-ahead.
Consensus
Consensus is the holy grail of blockchain technology because it guarantees that transactions are checked and confirmed by a network of participants, establishing a system of trust and transparency that is impervious to fraud or manipulation. This implies that a majority of network nodes must approve of every transaction before it can take place on a blockchain. Imagine yourself in a room filled with individuals who must all concur on a choice before it can be made. Every participant at the meeting is a node on the blockchain; they must all concur on whether a transaction is valid or not. There are other ways to reach consensus (which we will discuss in more detail later in this article), and the choice of method can have a big impact on the blockchain’s speed, security, and scalability.
Smart contracts
Smart contracts are programmed agreements that go into effect when certain criteria are met. They give customers the ability to create trustless contracts that are enforced by code rather than relying on middlemen. A smart contract can be used to automate many different types of transactions, from enabling decentralised crowdfunding campaigns to delivering cryptocurrency to a family member when a specified event occurs. Smart contracts have the ability to completely change how we interact with one another and conduct business. The possibilities are unlimited. It is important to note that, in contrast to more established, older OG blockchains like Bitcoin, younger blockchains often come with the capacity to deploy smart contracts by default.
Together, these components build a safe and open system for logging transactions and archiving data. Blockchain technology offers a new method of processing transactions and engaging with one another in a trustless and decentralised fashion by doing away with the requirement for a central authority and using encryption and consensus procedures to secure the integrity of the system.
Lets us see about “ How a Blockchain transaction works “ in the next part. Please share the blog if you feels it is really help full. Thank you.
