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John Mc Keown 2023-12-22 15:55:49

Why comparing Blockchains by transaction metrics is a fishing expedition - Tekedia

Transactions are signed messages recorded on blockchains. Every block has a limited amount of storage space. Not all blocks get completed in the same time. Not all transactions require the same amount of data, and depending on the blockchain, those that keep it running - Miners or Validators - can place criteria, such as the transaction size, or the fee available, on which transactions they will agree to process. The average of all of these variables leads to a rating, called 'Transactions Per Second' (TPS) - for blockchains, or other 'crypto-architectures'. Web 3 journalists and content creators are sometimes obsessed with this variable, and over stress its significance compared to security. 'Scaling' is a term generally in business that means to do the same thing faster (and possibly cheaper). One method of approaching this with blockchains, is to use other 'crypto-architectures' on top of them. These split the transaction into two unequal parts. They mimic the node functions of the blockchain, and 'mint' the larger part onto their 'off chain' network, sending only a small piece of 'meta data' on to the blockchain itself. Since the meta data is only a fraction of the transaction size, a lot more transactions can be accommodated on the block. At the moment, there are a lot of rumours of renewed building on these other 'crypto-architectures' , and about plans to build new ones. There is also talk about an imminent 'bull run' in Web 3, though this is mostly affected by a recent surge in the value of Bitcoin compared to the $USD. The popularity of Bitcoin as a store of value has more to do with world events, and lack of confidence in other instruments. This does not necessarily stimulate the market in supporting the minting of other types of assets to 'crypto-architectures'. If indeed, new building is going on, it is important to understand building is an indicator of renewed investment risk taking, not evidence of sales. But when, instead of full transactions, meta data is being added to blocks, we are not always being given data that represents consumer confidence, coin/token exchange or crypto-asset purchases. When we see data comparing different blockchains, we need to look at what specific information is being shared about transaction types, in order to make fair comparisons. The person holding a fishing rod, the rod, the reel, the line, the hook and the bait, are all fishing transactions if they move, but movement in itself, does not mean there is a fish on the line. Some blockchain transactions really do mean a fish is reaching somebody's plate. Many of them can be 'just fishing'.

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