Blockchain Throughput Overestimated by 75%, Study Finds
A recent study conducted by Taraxa, a Layer-1 blockchain, has revealed that many blockchain projects significantly overestimate their throughput capabilities. According to the report published by BeInCrypto, networks such as Sonic, Solana, and Aptos have been found to inflate their transaction per second (TPS) claims by an average of 20 times, with Sonic exaggerating its figures by over 100 times. The study utilized a metric called "TPS per dollar," which compares transactions per second to the cost of running a validator node, to provide a more accurate representation of real-world performance.
Steven Pu, co-founder of Taraxa, emphasized the importance of transparency in the blockchain industry, stating that theoretical performance figures often fail to reflect real-world conditions. The study excluded permissioned and sharded networks and discarded specific transactions, such as voting transactions, to avoid inflating numbers. The findings highlighted that many networks require expensive hardware to achieve modest transaction rates, raising questions about decentralization and efficiency. Despite the industry's marketing bias, the study aims to encourage more realistic reporting of blockchain performance metrics.
For more details, visit BeInCrypto's report at https://beincrypto.com/taraxa-study-blockchain-throughput/.
UAE Companies Introduce Insurance for Crypto Firms
In response to the growing risks in the digital asset sector, two UAE-based companies, Liva Group and Relm Insurance MENA, have launched specialized insurance products for firms operating in emerging markets such as blockchain, AI, and biotech. As reported by Khaleej Times, these products include directors' and officers' liability insurance, professional liability insurance, and cybercrime insurance, aimed at protecting startups and established players from potential risks. Joseph Ziolkowski, CEO of Relm Insurance, highlighted the importance of these coverages for companies to grow and stay protected in a rapidly evolving industry.
The initiative comes in the wake of a sophisticated attack on the Dubai-based cryptocurrency exchange Bybit, which resulted in a loss of approximately Dh5.51 billion. Ziolkowski described the incident as a "learning experience" for the insurance industry, shedding light on vulnerabilities and the effectiveness of existing coverage. Martin Ruegg, Group CEO of Liva Group, noted the challenges in pricing insurance for digital assets due to the lack of historical data. The partnership aims to address a significant gap in the UAE market, providing tailored insurance solutions for companies in the Web3 and digital asset space.
For further information, refer to the Khaleej Times article at https://www.khaleejtimes.com/business/uae-companies-launch-insurance-for-crypto-firms-say-they-are-learning-from-bybits-15-billion-hack.
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