In a new article, venture capital firm a16z crypto highlights that blockchain throughput has increased more than 100-fold over the past five years, with some production systems now capable of processing tens of thousands of transactions per second. However, the firm notes that throughput alone does not determine when transactions settle; financial markets require predictability, including inclusion guarantees or censorship resistance, and ordering guarantees that ensure transactions are finalized on time under rules participants can understand in advance. The article emphasizes resilience, meaning no single operator controls access. To this end, a16z researchers introduced the concept of Strong Chain Quality, which reserves block space to provide multiple routes for valid transactions. Ordering rules must be clear—such as priority fees or venue rules—to avoid MEV and achieve fair price-time priority. Additionally, pre-execution privacy via encryption is needed to hide intentions until inclusion, allowing markets to be auditable without real-time previews of unfilled orders.
Venture capital firm a16z crypto published an article stating that blockchain throughput has surged more than 100 times in five years, with some production systems now processing tens of thousands of transactions per second.
Throughput alone does not indicate when a transaction will settle, the article said. Financial markets need predictability, which includes inclusion guarantees or censorship resistance, as well as ordering guarantees that ensure transactions are settled on time under pre-defined rules. Resilience means no single operator controls access, the firm noted. a16z researchers introduced the concept of Strong Chain Quality, which reserves block space to allow valid transactions to enter through multiple routes.
Ordering rules must be explicit, such as priority fees or venue rules, to avoid MEV and achieve fair price-time priority. The article also calls for pre-execution privacy through encryption, hiding intentions until inclusion is final. This allows markets to be auditable without real-time preview of unfilled orders.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
