When it comes to blockchain technology, performance is a key factor that determines scalability, user experience, and long-term viability. In this comprehensive analysis, we compare the layer-1 performance of six major blockchain platforms: Ethereum, Cardano, Solana, Avalanche, Algorand, and Internet Computer. While layer-2 scaling solutions are gaining traction, especially for networks like Ethereum and Cardano, we focus strictly on on-chain (layer-1) capabilities—including transaction throughput, finality time, real-world usage, and network efficiency.
Key Metrics in Blockchain Performance
Before diving into individual blockchains, it’s essential to understand the core metrics used in evaluating layer-1 performance:
- Transactions Per Second (TPS): The number of transactions a network can process per second.
- Time to Finality: How quickly a transaction becomes irreversible.
- Real-World Throughput: Actual transaction volume observed on the network.
- Decentralization & Node Count: Reflects network resilience and accessibility.
- Energy Efficiency: Environmental impact and sustainability.
These metrics help assess not just speed, but also reliability and practical usability.
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Ethereum: Security Over Speed
Ethereum remains the most widely used smart contract platform, prioritizing security and decentralization over raw speed. Its theoretical maximum throughput is around 119 TPS, but in practice, it handles only about 14 TPS on layer 1. This bottleneck stems from its consensus design and block size limitations.
Despite low throughput, Ethereum sees massive demand—users pay approximately $9.6 million daily in fees, reflecting its dominance in DeFi, NFTs, and Web3 applications.
Transaction finality on Ethereum takes roughly 15 minutes, equivalent to two epochs under the current Proof-of-Stake model. However, Ethereum’s roadmap includes Single Slot Finality (SSF), which could reduce finality time to just seconds in future upgrades.
While Ethereum's layer-1 performance may lag behind newer blockchains, its robust ecosystem and thriving layer-2 ecosystem (e.g., Arbitrum, Optimism) offset these limitations.
Cardano: Methodical Growth with Future Scalability
Cardano emphasizes academic rigor and long-term sustainability. Its current theoretical capacity reaches 386 TPS, significantly higher than Ethereum’s. However, actual usage remains low—around 2 TPS—indicating substantial headroom for growth.
Finality on Cardano operates on a nuanced basis. The Ouroboros consensus protocol ensures cryptographic finality after 2,160 blocks (~12 hours), but in practical use cases, transactions are typically considered safe within 2 to 25 minutes, depending on risk tolerance.
Cardano is actively developing Hydra, a layer-2 scaling solution designed to boost throughput dramatically. This reflects its strategy: prioritize security first, then scale efficiently without compromising decentralization.
Solana: High-Speed Layer-1 Powerhouse
Solana stands out for its focus on maximizing layer-1 performance. In lab conditions, it has demonstrated up to 65,000 TPS, though real-world throughput averages just under 1,000 TPS when excluding validator vote transactions.
This performance comes at a cost—Solana has faced criticism for occasional network outages and centralization concerns due to high hardware requirements for validators.
Finality is fast: transactions settle in about 12 seconds after 31 block confirmations. With the upcoming launch of Firedancer, a new client developed by Jump Crypto, Solana aims to enhance stability and scalability further.
👉 Explore how next-gen blockchains are pushing the limits of transaction speed and efficiency.
Avalanche: Subnets and Near-Instant Finality
Avalanche offers a unique architecture with multiple interoperable subnets. While older sources cited a theoretical 4,500 TPS, current official benchmarks are scarce. Real-world data shows the C-Chain (EVM-compatible chain) processes about 3.5 TPS, while the entire network—including subnets—handles around 15.5 TPS.
One of Avalanche’s standout features is its one-second finality, enabled by its novel consensus mechanism. This makes it ideal for applications requiring rapid confirmation times.
The network also excels in energy efficiency and supports customizable blockspace via subnets—a feature attracting enterprises and specialized dApps.
Algorand: Instant Finality and Efficiency
Algorand boasts one of the fastest finalities in the industry—effectively instant, limited only by its ~3-second block time. Post-upgrade 3.9, it supports up to 6,000 TPS, with ambitions to reach 10,000 TPS through reduced round times.
In practice, Algorand handles nearly 30 TPS, with average fees as low as $0.0008 per transaction. It maintains high energy efficiency and focuses solely on layer-1 improvements rather than relying on layer-2 solutions.
Despite strong technical fundamentals, Algorand lags in ecosystem adoption compared to rivals like Solana or Avalanche.
Internet Computer: Speed with Tradeoffs
The Internet Computer delivers impressive layer-1 performance with a theoretical throughput of 11,500 TPS and real-world usage reaching 6,000 TPS—among the highest in this comparison.
Finality is swift: 1 second for dApp subnets and 2 seconds for governance (NNS) transactions. Transaction fees average just $0.0012, making it highly cost-effective.
However, these gains come with significant tradeoffs. Unlike other networks, Internet Computer requires permission to become a validator, raising concerns about decentralization. This permissioned model enhances performance but reduces open participation.
Frequently Asked Questions (FAQ)
Q: Why does real-world TPS differ so much from theoretical TPS?
A: Theoretical TPS assumes ideal conditions—simple transactions, full blocks, no congestion. Real-world usage involves complex smart contracts, variable block sizes, and network load, which reduce effective throughput.
Q: Is higher TPS always better?
A: Not necessarily. While high throughput improves scalability, it often comes with tradeoffs in decentralization or security. A balanced design suits most decentralized applications better than raw speed alone.
Q: What is time to finality and why does it matter?
A: Finality refers to when a transaction becomes irreversible. Faster finality improves user experience and enables quicker settlement in financial applications, exchanges, and gaming.
Q: How do layer-2 solutions affect layer-1 performance comparisons?
A: Layer-2s offload transactions from the main chain, improving scalability without changing layer-1 speed. However, they rely on the underlying chain’s security. Comparing pure layer-1 performance gives insight into base-layer capabilities before enhancements.
Q: Which blockchain is best for developers?
A: It depends on needs. Solana and Avalanche offer high speed and low fees; Ethereum provides the largest developer community; Algorand and Internet Computer deliver predictability and low costs; Cardano emphasizes formal verification and long-term stability.
Q: Are these performance metrics static?
A: No. All these networks are actively upgrading. For example, Ethereum’s SSF upgrade, Solana’s Firedancer client, and Algorand’s round time reductions will likely shift performance benchmarks in 2025 and beyond.
👉 See how top blockchains are evolving to meet growing demand for speed and scalability.
Final Thoughts
There is no single “best” blockchain—each platform makes different tradeoffs based on its design philosophy. Ethereum prioritizes security and decentralization; Solana focuses on speed; Avalanche enables customization; Algorand delivers efficiency; Cardano builds methodically; and Internet Computer pushes performance boundaries with permissioned infrastructure.
Understanding these differences allows developers, investors, and users to choose the right network for their specific use case—whether that’s DeFi, NFTs, enterprise solutions, or scalable dApps.
As blockchain technology evolves, layer-1 innovation will continue to shape the foundation of Web3. Keep an eye on upcoming upgrades—they may redefine what’s possible in decentralized systems.
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