As blockchain technology continues to evolve, the demand for faster, scalable, and energy-efficient networks has never been higher. While Bitcoin and Ethereum laid the foundation for decentralized systems, their limitations in transaction speed, scalability, and user experience have paved the way for next-generation Layer 1 blockchains.
In this in-depth analysis, we compare six leading Layer 1 protocols — Ethereum, Cardano, Solana, Avalanche, Algorand, and Internet Computer — across key performance metrics including transaction speed, scalability, node distribution, energy efficiency, cross-chain interoperability, and user key management.
Transaction Speed: TPS and Finality
One of the most critical indicators of a blockchain’s efficiency is its transaction processing capability, measured in transactions per second (TPS) and transaction finality — the time it takes for a transaction to become irreversible.
Ethereum: 15–20 TPS / 14-Minute Finality
Ethereum currently handles 15–20 TPS with a finality time of approximately 14 minutes. During periods of high congestion, gas fees can spike dramatically — at times exceeding $1,000 per transaction. While Ethereum’s transition to Proof-of-Stake (PoS) has improved energy efficiency, scalability remains a challenge. Future upgrades like sharding aim to enhance throughput significantly.
Cardano: ~2 TPS / 10–60 Minutes Finality
Despite claiming a theoretical capacity of 250 TPS, real-world measurements show Cardano processes only about 2 TPS. Block finality ranges from 10 minutes to over an hour depending on network load. Its upcoming Layer 2 solution, Hydra, promises up to 1 million TPS with near-instant finality — though it’s not yet live.
Algorand: 20 TPS / 4–5 Seconds Finality
Algorand boasts fast finality of just 4–5 seconds and uses Pure Proof-of-Stake (PPoS) for consensus. While it claims theoretical throughput of 1,200–3,000 TPS, actual network performance sits around 20 TPS, indicating underutilization or bottlenecks.
Solana: 2,000–3,000 TPS / 21–46 Seconds Finality
Solana leads in raw performance with reported throughput of 2,000–3,000 TPS. However, despite sub-second theoretical finality, practical confirmation takes 21–46 seconds due to "optimistic confirmation" models. Network outages in 2021 and 2022 raised concerns about reliability under peak load.
Avalanche: 4,500 TPS / 2–3 Seconds Finality
Avalanche’s consensus design enables rapid finality within 2–3 seconds. The testnet achieved 4,500 TPS, but mainnet performance on the EVM-compatible C-Chain lags at around 9 TPS, suggesting scalability gaps between theory and practice.
Internet Computer: 11,500 TPS / 1-Second Finality
Internet Computer stands out with real-world throughput reaching 11,500 TPS and finality within one second. This is achieved by separating update calls (state-changing) from query calls (read-only), allowing ultra-fast responses for dApp interactions. It can handle over 250,000 read queries in milliseconds.
👉 Discover how high-speed blockchains are redefining decentralized applications
Scalability: Can the Network Grow?
Scalability refers to a blockchain’s ability to maintain performance as user demand increases.
- Ethereum: Currently limited by PoW legacy; transitioning to PoS and sharding aims to improve scalability via 64 shard chains.
- Cardano: Faces scalability constraints; Hydra Layer 2 solution may unlock massive parallel processing.
- Solana: Struggled with outages under load; relies on off-chain storage via Arweave, raising centralization concerns.
- Avalanche: Uses three separate chains (X, P, C), but data is stored off-chain using Web2 infrastructure like Ceramic and Arweave.
- Algorand: High scalability potential through VRF-based leader selection and efficient consensus.
- Internet Computer: Offers infinite scalability by forming subnet blockchains. Each subnet operates independently and can scale horizontally by adding more nodes.
This architectural flexibility allows Internet Computer to support large-scale dApps without degradation in performance.
Node Count and Cloud Dependency
Decentralization is closely tied to node distribution and independence from centralized cloud providers.
| Blockchain | Node Count | Cloud Reliance | On-Chain Storage Cost (per GB/year) |
|---|---|---|---|
| Ethereum | ~6,000 | High (AWS) | Over $73 million |
| Cardano | ~3,173 | Partial | Not supported |
| Algorand | ~1,997 | High (AWS) | Uses IPFS (off-chain) |
| Solana | ~1,603 | High (AWS) | ~$1 million |
| Avalanche | ~1,243 | High (AWS) | ~$988,000 |
| Internet Computer | 443 | None | $5 |
Notably, Internet Computer runs on independent data centers with no reliance on AWS or other centralized clouds. With only 443 nodes, it achieves high performance while maintaining decentralization — a rare balance in the blockchain space.
Energy Efficiency: Toward Sustainable Blockchains
Energy consumption is a growing concern as environmental impact becomes a priority.
- Ethereum: Previously consumed ~238 kWh per transaction under PoW; post-merge PoS reduced energy use by over 99%.
- Cardano: Extremely efficient at 0.5 kWh/tx.
- Solana: Among the most efficient at 0.00051 kWh/tx.
- Algorand: Reports 0.0027 kWh/tx.
- Avalanche: Around 0.00476 kWh/tx.
- Internet Computer: Uses 1.3 kWh/tx, all processed on-chain without outsourcing.
While many PoS chains appear efficient, they often outsource compute or storage to energy-intensive cloud services — creating hidden carbon footprints. Internet Computer processes everything on-chain with minimal environmental cost.
👉 See how sustainable blockchains are shaping the future of Web3
Cross-Chain Bridging and Interoperability
Interoperability enables asset and data transfer across chains.
- Ethereum, Solana, and others rely on bridges like Wormhole (which suffered a $320M hack).
- Chainalysis reports over $1 billion stolen via bridge exploits in the past year.
- Internet Computer offers both a bridge (Terabethia) to Ethereum and bridgeless integration using cryptographic proofs.
- It’s also integrating with Bitcoin to enable smart contracts on BTC — a major innovation.
This dual approach enhances security while expanding ecosystem connectivity.
User Key Management: Simplifying Web3 Access
Private key management remains a barrier to mainstream adoption.
- Most blockchains require users to manage complex wallets and private keys.
- Solana uses Torus, which links to Google/Facebook accounts — convenient but compromises decentralization.
- Ethereum often relies on centralized custodians or cloud-based key storage.
Internet Computer introduces Internet Identity, allowing login via biometrics (fingerprint, face scan), passkeys, or PINs — no private keys needed. It also features a “reverse gas” model where developers pay fees in Cycles, so users transact fee-free.
This UX breakthrough lowers the entry barrier for non-technical users.
Frequently Asked Questions (FAQ)
Q: Which blockchain has the highest real-world transaction speed?
A: Internet Computer leads with verified throughput of 11,500 TPS and one-second finality, outperforming others in live conditions.
Q: Is Ethereum still the most decentralized blockchain?
A: Ethereum has the highest node count (~6,000), but over 70% run on AWS — raising questions about true decentralization compared to networks like Internet Computer that avoid cloud providers entirely.
Q: Can any blockchain scale infinitely?
A: Internet Computer is designed for infinite scalability through subnet architecture. New subnets can be added dynamically without affecting existing ones.
Q: Are cross-chain bridges safe?
A: Most bridges are vulnerable attack vectors. Over $1 billion was stolen from bridges in the last year. Solutions like Internet Computer’s bridgeless integration offer stronger security.
Q: How does Internet Computer achieve low-cost storage?
A: By running on independent node machines globally and optimizing data storage protocols, it offers on-chain storage at just $5 per GB per year, compared to millions on other chains.
Q: What makes a blockchain truly sustainable?
A: True sustainability combines low energy per transaction with on-chain processing. Outsourcing to AWS may reduce direct usage but shifts environmental costs elsewhere.
Final Thoughts: The Future of Layer 1 Innovation
The next wave of blockchain adoption hinges on solving core challenges: speed, scalability, security, usability, and sustainability.
While Ethereum remains dominant in DeFi and NFTs, newer Layer 1s like Solana, Avalanche, and especially Internet Computer are pushing boundaries in performance and user experience.
Among them, Internet Computer emerges as a unique contender — combining ultra-fast speeds, infinite scalability, minimal fees, full on-chain operation, and seamless user authentication — all while avoiding centralized cloud dependencies.
As developers seek platforms that support scalable dApps without sacrificing decentralization, these technical differentiators will define the next generation of blockchain leaders.