Blockchain Throughput
Blockchain throughput represents the volume of transactions a network can successfully process and validate within a specific timeframe, usually measured in transactions per second. This metric is a fundamental constraint for decentralized exchanges and derivatives protocols relying on on-chain settlement.
Low throughput leads to network congestion, where transaction fees spike and confirmation times increase significantly. This creates a bottleneck that limits the scalability of financial applications, as users compete for limited block space.
Solutions such as layer-two scaling, sharding, and optimized consensus algorithms aim to increase this capacity. High throughput is essential for maintaining the liquidity and efficiency required for active derivatives trading.