Comparing the performance of distinct blockchain ecosystems remains challenging, often prompting the community to rely on superficial metrics like transactions per second (TPS). This article dives deep into the multifaceted nature of blockchain performance metrics — an indispensable facet when rolling out a new use case or decentralized application (dApp). We explore different measurements and discuss alternative strategies blockchains adopt to tackle scalability. Moreover, we’re keen to hear about their preferred metrics from the community.
Key Performance Metrics
In a pre-sharded Ethereum environment, the L1 achieves approximately 15 TPS with a time to finality (TTF) of around 15 minutes. In contrast, centralized systems like Visa can process up to 15,000 TPS, underscoring the urgent need for enhanced scalability in blockchains. Before examining potential solutions, it’s vital to critically assess the metrics in use for gauging blockchain performance.
While TPS offers a quantitative measure, it often overlooks essential qualitative nuances. Blockchains that accommodate smart contracts, such as Ethereum and Solana, can handle varying computational tasks. Therefore, both simple token transfers and complex smart contract deployments count as transactions, but their computational demands differ.
Such disparities underscore throughput’s relevance as a more reflective metric. Throughput relates to the speed of adding new blocks and the computational tasks processed within these blocks. It is constrained due to the need to balance several elements, including CPU utilization, bandwidth, and storage demands. Typically, attempting to increase throughput results in a reduction in the number of available network nodes, inching the system toward centralization.
Thus, even if throughput offers a superior metric, it should be evaluated alongside the number of active nodes. This introduces us to the blockchain trilemma: the ongoing challenge of harmonizing security, decentralization, and scalability. Efforts to bolster scalability can inadvertently diminish decentralization.
The L2 Solution
Within Ethereum’s ecosystem, L2 solutions have surfaced to offload calculations from the Ethereum network, distribute transactional costs, and employ Ethereum L1 for assured settlements. This implies that L2s either wholly or partly harness their security from Ethereum’s L1, obviating the need to trust L2 validators solely.
The distinction between “wholly” and “partly” is pivotal. By transitioning transactions away from L1, L2s might compromise on certain security facets, a necessity to achieve augmented performance. Also, it’s difficult to maintain agreement around a global state when transaction events occur off the L1.
Alternatives to L2s
A feasible alternative to reconciling L2 state with L1 is devising a robust L1 tailored to cater to multiple dApps’ requirements. Solana adopts this methodology, facilitating parallel transaction executions for different accounts. Presently, the Solana Mainnet supports four independent transaction pipelines, a number that’s adaptable based on burgeoning demands.
Yet, maximizing Solana’s potential necessitates developers acquainting themselves with its distinct programming, memory, and computational frameworks — a challenge adeptly navigated by Neon EVM.
Neon EVM: Navigating the L2 Hurdles
Neon EVM, being the pioneering EVM on Solana, enables users to leverage Solana’s parallel execution without the need to overhaul their entire dApps. This ensures that, for the first time, native Ethereum dApps can harness the full power of the EVM while relying on Solana’s L1 transaction layer.
Community Insights
In recent developments, Neon EVM has surpassed expectations, achieving a notable TPS of over 700 on the Solana Mainnet. As our research and testing endeavors persist, we invite you, our esteemed community, to share your insights. Beyond TPS, what other metrics resonate with you?
For a more in depth inside into the troublesome issue of assessing blockchain performance check out our blog here: https://neonevm.org/blog/which-performance-metrics-matter
Your Voice Matters
In our future reports, we aim to expand our metrics horizon. Thus, besides TPS, which other metrics would you like to see? Are there blockchain benchmark tests that you swear by? Whether it’s related to security, decentralization aspects, or something entirely different, we value your input. Our shared curiosity and collaborative spirit will steer the future trajectory of blockchain performance assessments. Join our community on Discord and Twitter, and let us know.
