What are Performance Indicators?
Performance indicators are special metrics used to measure the performance of a particular thing. Studying key performance indicators helps us compare different blockchains to find the most suitable one for developing projects and minting NFT.
Key indicators
Key performance indicators used to measure the performance of a blockchain network include:
1. Transactions Per Second(TPS)
TPS is one of the critical indicators studied by anyone familiar with the blockchain industry, which refers to the number of transactions a blockchain can process in one second.
TPS is used to identify the scalability of a blockchain and the amount of data it can process.
The number of transactions submitted to the blockchain and the number of transactions stored in the ledger can be measured separately to obtain higher clarity and better results.
However, blockchain with high TPS value is not necessarily superior to other available options, and many other factors should be considered.For example, the TPS value of BTC is very low, but there are thousands of nodes at any time, which makes BTC one of the most popular blockchains.
2. Transaction Latency
Transaction latency refers to the time between the submission of a specific transaction to the block and its approval or rejection.Once a transaction is approved, we can see and use it throughout the entire blockchain.
This key indicator is helpful to compare the ability of blockchain to react quickly to transactions, which is a key aspect in any sense.
3. Transaction throughput
Transaction throughput is the time required to add an effective record to the block. The corresponding time is calculated only after the relevant record has been approved. Other time is 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.
4. Energy Efficiency
Although energy efficiency is not a direct network performance indicator, it plays a crucial role, considering the global energy shortage and the increasing consensus on saving energy worldwide.
Blockchain needs a certain amount of energy to play its role,mainly for transaction validation, processing, and storage. The energy consumed here largely depends on the consensus mechanism adopted.
Although most major blockchains use the PoW (Proof of Work) model, which is a high-energy-consuming model, various new blockchains rely on more advanced and low-energy-consuming PoS (Proof of Stake) or PoA (Proof of Authority) mechanisms.
Therefore, before selecting the next blockchain development project, please make sure to check which consensus mechanism is used.
5. Number of verifiers
Validators refer to individuals who validate transactions on the blockchain in exchange for rewards. They are typically specialized in the blockchain and work to maintain its integrity. Once a transaction has been validated, it is added to the blockchain ledger. Whenever a transaction is initiated on the blockchain, validators add it to a block for validation.
Once a block is completed, it is stored on the blockchain and cannot be modified. All of these tasks are performed by validators. Therefore, the more validators there are, the better the performance of the blockchain!
6. Block time
Block time is the amount of time required for validators or miners to validate the transactions stored in the block. Once completed, another transaction is created. The total time required for these steps is block time.
In addition, miners or validators who participate can receive rewards.
- Remember that each new block created on the blockchain stores a reference to the previous block. Therefore, it is not possible to change blocks or remove any blocks from the blockchain.
- Based on the six key metrics that measure blockchain network performance, we can easily compare and choose from hundreds of available blockchain options.
- However, if a user wants to develop a project, such as DAPP or mintNFT, they need to consider the support of EVM-compatible tools, as well as TPS and fees.