The bottleneck problem: Why ‘fast’ blockchains fail when it counts most | Opinion

2025/06/24 17:19

Disclosure: The views and opinions expressed here belong solely to the author and do not represent the views and opinions of crypto.news’ editorial.

For over a decade, blockchain developers have pursued one primary metric of performance: speed. Transactions per second (TPS) became the industry’s benchmark for technological advancement, as networks raced to outpace traditional financial systems. Yet, speed alone hasn’t delivered the kind of mass adoption once envisioned. Instead, high-TPS blockchains have repeatedly stumbled during periods of real-world demand. The root cause is a structural weakness rarely discussed in whitepapers: the bottleneck problem.

A “fast” blockchain, in theory, should excel under pressure. In practice, many falter. The reason lies in how network components behave under heavy load. The bottleneck problem refers to the series of technical constraints that emerge when blockchains prioritize throughput without adequately addressing systemic friction. These limits reveal themselves most starkly during spikes in user activity. Ironically, the moments when blockchains are needed most.

The first bottleneck appears at the validator and node level. To support high TPS, nodes must process and validate a vast number of transactions quickly. This demands significant hardware resources: processing power, memory, and bandwidth. But hardware has limits, and not every node in a decentralized system operates under ideal conditions. As transactions accumulate, underperforming nodes delay block propagation or drop out altogether, fragmenting consensus and slowing the network.

The second layer of the problem is user behavior. In high-traffic periods, the holding areas for pending transactions—mempools, flood with activity. Sophisticated users and bots engage in front-running strategies, paying higher fees to jump the queue. This pushes out legitimate transactions, many of which ultimately fail. The mempool becomes a battleground, and user experience deteriorates.

Third is the propagation delay. Blockchains rely on peer-to-peer communication between nodes to share transactions and blocks. But when the volume of messages increases rapidly, propagation becomes uneven. Some nodes receive critical data faster than others. This lag can trigger temporary forks, wasted computation, and in extreme cases, reorganization of the chain. All of this undermines trust in finality.

Another hidden weakness lies in consensus itself. High-frequency block creation is necessary for maintaining TPS, which places enormous stress on consensus algorithms. Some protocols were simply not designed to make decisions with millisecond urgency. As a result, validator misalignment and slashing errors become more common, introducing risk into the very mechanism that ensures network integrity.

Finally, there’s the question of storage. Chains optimized for speed often neglect storage efficiency. As transaction volumes grow, so does the size of the ledger. Without pruning, compression, or alternative storage strategies, chains balloon in size. This further increases the cost of running a node, consolidating control in the hands of those who can afford high-performance infrastructure and thereby weakening decentralization. To tackle the issue, one of the key tasks for layer-0 solutions in the nearest future will be to seamlessly unite storage and speed within one blockchain. 

Fortunately, the industry has responded with engineering solutions that directly address these threats. Local fee markets have been introduced to segment demand and reduce pressure on global mempools. Anti-front-running tools, such as MEV protection layers and spam filters, have emerged to shield users from manipulative behaviors. And new propagation techniques, like Solana’s (SOL) Turbine protocol, have drastically reduced message latency across the network. Modular consensus layers, exemplified by projects like Celestia, distribute decision-making more efficiently and separate execution from consensus. Finally, on the storage front, snapshotting, pruning, and parallel disk writes have allowed networks to maintain high speed without compromising on size or stability.

Beyond their technical impact, these advances have another effect: they disincentivize market manipulation. Pump-and-dump schemes, sniper bots, and artificial price inflations often rely on exploiting network inefficiencies. As blockchains become more resistant to congestion and frontrunning, such manipulations become harder to execute at scale. In turn, this lowers volatility, increases investor confidence, and reduces the load on the underlying network infrastructure.

The reality is that many first-generation high-speed blockchains were built without accounting for these interlocking constraints. When performance failed, the remedy was to patch bugs, rewrite consensus logic, or throw more hardware at the problem. None of these quick fixes addressed the foundational architecture. By contrast, today’s leading platforms are taking a different approach, building with these lessons in mind from the start. That includes designing systems where speed is a byproduct of efficiency.

The future of blockchain does not belong to the fastest. Once reaching Visa’s 65,000 TPS without errors, the blockchain should stay resilient under future pressure to become a full-fledged analogue of the web2 payment system, for the bottleneck problem is now central to blockchain engineering. Those who address it early will define the standard for performance in the next era of web3.

Christopher Louis Tsu
Christopher Louis Tsu

Christopher Louis Tsu is the CEO of Venom Foundation, a layer-0 blockchain protocol focused on scalable, secure, and compliant solutions for global web3 infrastructure. With over two decades of experience at the intersection of finance and technology, including leadership roles at Amazon and Microsoft, he now leads the development of interoperable ecosystems that bridge traditional finance with decentralized technologies.

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