Why Blockchain Networks Affect Transaction Speed?

2 min readAug 30, 2022


Transaction speed is a major factor that determines the efficiency of a blockchain. It is a measure of the time taken to complete each transaction. The higher the transaction speed, the faster transactions get verified and confirmed. But, how does the blockchain network correlate to transaction speed? The answer to this question will be discussed via the three features below.


This is the speed at which a blockchain processes its transactions. Throughput is expressed in Transactions Per Second, Minutes, or Hours. They are represented as TPS, TPM, or TPH respectively. The consensus mechanism of a Blockchain determines whether its throughput would be high or low.

Hence, cryptos with Proof of Stake mechanisms would likely have a lower throughput than those with Proof of Work. This could be because PoS tokens are not labor intensive whereas PoW coins are.


Blockchain scalability partly refers to its ability to support high transaction volume within the shortest possible period. In more generic terms, however, scalability is a blockchain feature that enhances further development of its technology and has a direct effect on its transaction speed. A blockchain with high scalability maintains its network’s performance even when its adoption increases.

Generally, the blockchain networks are yet to achieve near-instant transactions because of their low transaction speed. Bitcoin, for example, processes only seven transactions per second (TPS) while Visa can handle over 20,000 transactions within the same time frame.

Network Charges

Trading or gas fees affect the blockchain scalability and transaction speed. In the PoW mechanism, miners need more computational power for faster transaction validation. This could make the process more complex which consequently increases the trading fees. Users who need speedy verification services must ensure they maintain a minimum balance which would be charged as the network or gas fees. The higher the gas fees for a network, the higher users ignore such networks for other alternatives that charge lower gas fees.

Blockchain Capacity

This is a measure of the volume of data a blockchain network can hold at a given time. It is directly related to its scalability since a blockchain becomes more scalable if it can hold an increasing volume of data. However, the network would become congested if the blockchain does not have enough block space or capacity. This could reduce the blockchain efficiency and retard its transactional speed.


A blockchain network is more efficient when its transaction speed is high. But when it is overloaded with data, the speed reduces, requiring traders to pay higher fees to get their transactions verified faster. Moreover, relieving the blockchain loads can improve the low transaction speed through scaling (Sharding and payment protocols). Our subsequent articles will focus on the unique features, capability and scalability options of specific blockchain networks like Ethereum, Polygon, Solana, Cardano and so on.

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