$XRP Ledger to Boost Transaction Throughput to 3,400 TPS with Upcoming Upgrades

The transaction throughput of the $XRP Ledger is set to soon surge from around 1,500 transactions per second to an impressive 3,400 transactions per second (TPS), bolstered by upgrades that are soon set to be deployed.

The transaction throughput’s upcoming increase was first spotted by Kevin Cage, an Investment Advisor at Iron Key Capital, who noted that on Ripple’s website the copy was updated to show “XRP Ledger technology can handle 3,400 transactions per second.”

The change prompted a number of reactions, ranging from optimism to skepticism, within the XRP community. A prominent member of the community, Krippenreiter, noted that there are three pull-requests on GitHub aimed at bolstering the network’s transactions throughput and helping stabilize the ledger.

While two of these requests are set for deployment in the forthcoming rippled v1.12, Krippenreiter cautioned enthusiasts, suggesting that the new numbers might for now be more aspirational than grounded in reality.

Ripple’s engineering brigade isn’t sitting idle amidst these debates. Delving into the ledger’s history, they recollected that their 2015 testing could only handle a modest 80 TPS. Yet, the latest tests, they claimed, have broken all previous barriers by reaching a staggering 3,400 TPS.

hey credit this leap to a rigorous and phased testing methodology, underscored by a commitment to preserving the network’s resilience and efficacy. Notably, Ripple’s CTO David Scwartz disclosed earlier this year that the team never saw the XRP Ledger handling up to 1,500 transactions per second on the mainnet.

Per his words, the claims on the website may be “poorly worded,” and the ledger’s real-world capacity could be closer to the 300 to 500 transaction per second mark.

As CryptoGlobe reported, XRP token holders could soon star being able to earn income on-chain after the highly-anticipated XLS-30d amendment is launched, which is set to would introduce a built-in automated market maker (AMM) trading platform into the ledger.

An AMM is a platform that allows for cryptocurrency trading in a permissionless way using liquidity pools, rather than traditional order books. Liquidity pools are shared pools of two or more tokens supplied by users that are used for trades. The prices of tokens within the pool are determined through the use of blockchain oracles.

Investors who add tokens to liquidity pools receive a share of the fees collected from each trade, but the revenue comes with the risk of impermanent loss. Impermanent loss occurs when price fluctuations alter the ratio of the tokens within the pool, meaning token providers could be better off if they simply held the tokens in their wallets.

Featured image via Pixabay.