n Part 2 of our Network Capacity Analysis we showed that the bitcoin network, in its current form, can process up to a sustained rate of approximately 3 transactions per second (TPS). Thus far in 2015, the network has realized an average of roughly 1.2 TPS. Owing to increased number of transactions per day (and per block), the trend has been moving higher, as portrayed in the figure below. In this piece we explore the consequences of increasing transaction volumes in terms of block utilization and wait time – particularly the difference between theoretical and practical realities. We also provide rough estimates of how soon the network might begin to experience noticeable transaction confirmation delays based on current growth rates.

https://tradeblock.com/blog/bitcoin-network-capacity-analysis-part-4-simulating-practical-capacity