In assessing blockchain performance, it is noted that relying on certain metrics can lead to misleading conclusions. With the rise of numerous blockchain networks, there is a growing need for objective and efficiency-focused metrics to truly differentiate between them, rather than falling for exaggerated claims.
Steven Pu, the Co-Founder of Taraxa, expressed concerns about the lack of accurate comparisons regarding blockchain performance due to metrics often being based on overly optimistic assumptions rather than solid evidence. He advocates for the introduction of a new metric called TPS/$ to address this issue.
The increasing number of Layer-1 blockchain networks highlights the necessity for clear performance benchmarks to separate genuine efficiency from inflated promises. Current industry benchmarks lack reliability in assessing real-world efficiency, often leading to misleading claims that obscure the actual capabilities of blockchain networks.
Pu emphasized that some projects manipulate TPS metrics for marketing purposes, thereby misrepresenting the true performance of their blockchain under practical circumstances.
Concerns were raised about the deceptive nature of some metrics, particularly TPS, which can distort the overall performance evaluation of blockchain networks. Pu highlighted the complexity of decentralized networks and the need to consider various aspects beyond a single metric like TPS to gain a comprehensive understanding of performance.
Pu's analysis revealed a significant discrepancy between the theoretical TPS and the actual figures observed on mainnets, suggesting a gap in performance estimations within the industry. He criticized the inflation of metrics, such as TPS, through unrealistic assumptions and costly infrastructure, leading to misleading representations.
Proposing a more balanced metric, TPS/$, Pu and his team developed a measure that considers the actual TPS achieved on live mainnets alongside hardware efficiency. By focusing on verifiable performance metrics and hardware costs, the TPS/$ ratio aims to provide a more accurate reflection of blockchain network efficiency.
Pu also emphasized the importance of distinguishing between permissioned and permissionless blockchain networks to assess decentralization levels accurately. He indicated that permissionless networks align better with decentralization principles compared to permissioned networks controlled by a single entity.
Moreover, Pu highlighted the significance of understanding state-sharding versus single-state approaches in determining a network's data management efficiency. State-sharded networks aim to increase transaction capacity but may experience longer finality latencies due to the independent processing of transactions across multiple shards.
In conclusion, Pu stressed the need for standardized and transparent benchmarks in evaluating blockchain projects to enable informed decision-making and drive genuine progress in the industry beyond mere hype.