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Throughput refers to the processing capacity of a blockchain network measured by the number of transactions that can be validated per second, known as transactions per second (TPS). It determines how fast a decentralized protocol can confirm transactions. Throughput depends on factors like the blockchain’s consensus mechanism, block size, transaction complexity, and network traffic load. For example, Proof-of-Stake networks generally have higher throughput than Proof-of-Work blockchains.

Additionally, simpler transactions like Bitcoin asset transfers can process faster than complex Ethereum transactions like minting NFTs or decentralized trades. To optimize throughput, developers implement solutions like rollups, sidechains, larger block sizes, and new consensus models. Overall, throughput calculates a blockchain’s effectiveness at handling traffic volume and executing both simple and sophisticated transaction types. Higher throughput leads to faster confirmation times and better scalability.

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