Key Metrics to Measure Blockchain Network Performance
Everything out there has a particular set of characteristics against which its performance can be measured. Be it something as simple as a car or as intricately intertwined as the blockchain. These factors also help draw a comparison between two or multiple blockchains in order to find out the one that’s best for developing projects, trading coins, or minting NFTs.
So, let’s find out the key metrics employed to measure the blockchain network performance. You could also use these to compare Zenith, a hybrid chain, with other blockchains and find out how it outperforms them all by a massive margin.
Transactions Per Second
One of the key metrics that anyone fairly acquainted with the blockchain industry would look into is Transactions per Second (TPS). It is basically the number of transactions that can be processed in a second. TPS is used to identify the scalability requirements of a blockchain and the volume of data it can process. Here the number of transactions submitted to the blockchain and those that were stored in the ledger are separately measured for higher clarity and better results.
Also, remember that a blockchain with a high TPS necessarily does not make it superior to other available options since there are a lot of other factors to be considered as well. Bitcoin, for instance, has a low TPS, something in the range of 5-10, but has thousands of nodes worldwide at any given moment, which makes it one of the most sought-after blockchains.
Transaction Latency is the amount of time that passes between a particular transaction being submitted to a blockchain and it being approved or rejected. Once a transaction is approved, its effects are visible across the blockchain and can be brought into use.
This key metric helps compare blockchains based on their ability to quickly reflect transactions and is a critical aspect in every sense.
Transaction Throughput is the time required for valid records to be added to blocks. The calculation of elapsed time starts only after the record has been approved and the ones rejected by the blockchain are not taken into consideration.
To calculate the Transaction Throughput, just divide the total number of records added to the blocks by the total time taken in seconds.
Though not directly a network performance indicator, Energy Efficiency plays a critical role considering the scarcity of energy across the globe and how consensus around saving it is rising worldwide. A blockchain requires a certain amount of energy to function, basically to validate, process, and store transactions. The amount of energy consumed here depends, to a great extent, on the consensus mechanism employed.
While most major blockchains use Proof of Work (PoW), a high-energy consuming model, various newer blockchains rely on more advanced and low-energy consuming Proof of Stake (PoS) or Proof of Authority (PoA) models. So, before you choose a blockchain the next time to develop a project, make sure to check which consensus mechanism is employed.
Number of Validators
Validators are those who verify transactions on the blockchain in exchange for rewards. These validators generally dedicate a computer to the blockchain to maintain its integrity. Once a transaction is verified, it is added to the ledger of the blockchain.
Whenever a transaction is initiated on the blockchain, validators add it to a block for verification. Once the block is completed, it is then stored on the blockchain and cannot be modified anymore. All this work is done by validators. So, the more the number of validators, the better the performance of the blockchain!
Block time is the amount of time required by validators or miners to verify the transactions stored in a block, and once it is complete, create another one. The total time elapsed between these steps comes out to be the block time. Also, miners or validators receive rewards for their participation in the form of cryptocurrency.
Remember that every new block created on the blockchain stores a reference of the block preceding it. So, it is not possible to alter the blocks or remove any from the blockchain since it would easily be noticed.
Based on these six key metrics to measure the blockchain network performance, you can easily compare and choose a blockchain from hundreds of available options. But if you were to develop a project, for instance, a Decentralized App (dApp) or create NFTs, Zenith Chain would be the best choice given its support for EVM-compatible tools, along with being a lot faster with 300,000 Transactions per Second (TPS) and cheaper than other available options.
Zenith Chain ensures programmability and interoperability. relies on 83 validators to process and store transactions on the blockchain, using the Proof of Authority (POA) consensus that can support short block time and lower fees.
Zenith Chain also has a thriving hybrid trading ecosystem, built to meet all Web 3 needs. FuzionX is a cutting-edge, versatile crypto exchange that will bring together a decentralized wallet, DApp browser, futures, margin, NFT wallet and marketplace, 600+ tokens and coins, credit and debit card funding options, fiat to crypto conversion, P2P trading, ETF, staking, move to earn, metaverse gateway, and so much more.