Anything will have some special metrics to measure its performance. Whether it is a simple physical object like a car, or a complex technology like blockchain technology.
Researching key metrics helps us compare different blockchains in order to find the most suitable blockchain for developing projects and minting NFTs.
So, let’s find out the key metrics that measure the performance of a blockchain network.
Transactions per second (TPS)
One of the key metrics that anyone familiar with the blockchain industry will study, TPS refers to the number of transactions a blockchain can process in one second.
TPS is used to identify the scalability of the blockchain and the amount of data it can handle .
Here we can separately measure the number of transactions submitted to the blockchain and the number of transactions stored in the ledger for greater clarity and better results.
Keep in mind that a blockchain with a high TPS is not necessarily better than the other options available, as there are many other factors to consider. For example, BTC has a low TPS value, but there are thousands of nodes at any one time, which makes BTC one of the most popular blockchains.
Transaction latency is the time between a particular transaction being submitted to a block and being approved or rejected. Once a transaction is approved, we can see and use it throughout the blockchain .
This key metric helps compare blockchain-based ability to quickly reflect transactions and is a critical aspect in every sense.
Transaction throughput The time it takes to add a valid record to a block. The corresponding time is not calculated until the relevant record is approved, and other times are not taken into account.
To calculate transaction throughput, simply divide the total number of records added to the block by the total time in seconds.
Energy efficiency, while not a direct measure of network performance, plays a key role, considering global energy shortages and a growing worldwide consensus on energy conservation.
Blockchains require a certain amount of energy to function, primarily to verify, process, and store transactions . The energy consumed here largely depends on the consensus mechanism employed.
While most major blockchains use PoW Proof of Work, which is an energy-intensive model, various new blockchains rely on the more advanced and low-energy PoS Proof of Stake or PoA Proof of Authority.
Therefore, before choosing your next blockchain development project, make sure to check which consensus mechanism is used.
number of validators
Validators are those who validate transactions on the blockchain in exchange for rewards. These validators are usually dedicated to the blockchain to maintain its integrity. Once a transaction is verified, it is added to the blockchain’s ledger.
Whenever a transaction is initiated on the blockchain, validators add it to the block for verification.
Once a block is complete, it is stored on the blockchain and can no longer be modified . All of this work is done by validators.
Therefore, the higher the number of validators, the better the performance of the blockchain!
Block time is the time it takes for validators or miners to validate a transaction stored in a block, and once done, create another transaction. The total time required for these steps is the block time.
Additionally, miners or validators can be rewarded for participating.
Remember that every new block created on the blockchain stores a reference to the previous block . Therefore, it is impossible to change blocks or remove any blocks from the blockchain.
Based on these six key metrics that measure blockchain network performance, we can easily compare and select blockchains from hundreds of available options.
But if a user wants to develop a project, such as a DAPP or mint NFT, support for EVM-compatible tools, as well as TPS and fees, need to be considered.
The original text comes from bitcoinist, compiled and organized by the blockchain knight, the English copyright belongs to the original author, please contact the editor for Chinese reprint.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/how-to-use-key-metrics-to-measure-blockchain-network-performance/
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