A new study by Steven Pu, co-founder of the Layer-1 blockchain Taraxa, reveals that theoretical blockchain performance is overestimated by an average of 75.46% compared to actual results across 22 different chains. The research highlights a significant gap between theoretical and real-world throughput figures, often inflated in marketing materials, as blockchains on average claim to be 20 times faster than they truly are. Only 4 out of the 22 blockchains studied achieved a satisfactory transaction per second (TPS) to cost ratio, indicating most networks incur high costs for relatively low transaction speeds. Pu suggests the industry should focus on real data from live networks and cost-efficiency rather than relying on idealized test conditions, urging a shift toward metrics that reliably reflect usability, cost-effectiveness, and decentralized adoption.

• What happened?
  New research from Steven Pu, Co-Founder of the blockchain platform Taraxa, reveals that theoretical throughput across 22 blockchain networks is overestimated by an average of 75.46%. The study highlights a significant gap between theoretical and real-world performance, showing that many projects inflate their transaction per second (TPS) figures in marketing materials. This discrepancy suggests many blockchain projects rely on idealized scenarios and equipment rather than true mainnet performance.
• Who does this affect?
  The findings primarily impact blockchain developers, investors, and end-users who might be making decisions based on overstated performance data. Developers may need to reconsider how they measure and report their network’s capabilities, while investors and users could re-evaluate their trust in current metrics presented by blockchain projects. This calls for more realistic and verifiable data for all stakeholders involved in the blockchain ecosystem.
• What does this mean?
  The market impact is substantial as blockchain projects that have based their valuation or attractiveness on TPS might see a shift in perception if their actual performance is less than advertised. The report underscores the importance of using cost-adjusted efficiency and real-world mainnet performance metrics over hypothetical throughput numbers. This might lead to increased scrutiny over blockchain scalability claims, potentially affecting investment trends and the technology’s adoption pace.