![]() In Cardano, we call this parameter the "maxBlockSize." This value is a delicate balance: setting the limit too high means that these huge blocks of data can be created every 20 seconds, and these big blocks need to be shared with every single person on the network - so bigger blocks can mean slower uptake, more vulnerability, and potentially more costly storage for transactions overall. Most modern blockchains, including Cardano, then choose to set a cap on how much data each block being written can contain in terms of bytes, not in terms of number of transactions. At the end of the day, a transaction in a blockchain is just a set of information describing what happened - who sent how much to where? Or in the case of smart contracts, who sent what to where, and what needs to happen as a result? So it's the case that some transactions take up a lot of data space, while others take up very little. To understand this complication, first recognize that most blockchains don't actually care about number of transactions when processing blocks, they care about the data size of those transactions. Why? Because the number of transactions in a block varies a ton. Things might seem simple up to this point, but this is actually where TPS gets really complicated. The more transactions in each of those bundles, the more transactions are being processed per second. That said, transactions per second then also depends on how many transactions are included in those bundles. In Cardano, we write blocks into the blockchain at an average rate of 1 block every 20 seconds. In most blockchain protocols, transactions are written into the blockchain in bundles of transactions, known as "blocks." Thus, the first factor that influences transaction speed is the rate at which these bundles are written and approved by multiple network validators (people who help make sure all transactions on the network are legit - known as "stake pools"). Let's begin by talking about the main factors that can influence the number of transactions a modern blockchain network can process per second. smart contracts, defi, etc.) will change TPS requirements and measurements, so don't put too much stock in the actual number. Right now, 7 TPS is more than sufficient for all current traffic, but it should be easily adjustable up to ~50 TPS, perhaps slightly beyond. Answer/Explanation: This is a long answer, so my up-front TLDR is this: Cardano currently operates at about 7TPS, but this is only limited at the moment by a network setting ("parameter") that can be easily changed according to network need.
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