Flopper1 on Nostr: To audit how the existing big blockchains would perform in such a tokenized world, we ...

To audit how the existing big blockchains would perform in such a tokenized world, we can start with a simple use case:
Every month, a company makes a (revenue) pay-out to whoever holds the token in that particular moment.
We can now build five scenarios around this assumption. To keep the scenarios simple, only two dimensions serve as variables:
(1) Total number of different tokens issued and 
(2) average number of holders per token.
Now, only the first variable (number of different tokens) is changed repeatedly by a factor of 10 to derive the number of transactions that must be handled by a blockchain:

For the above simulations, we assume that every holder should receive only one payment to their account/address every month.
The results are striking:

When trying to handle the above scenarios under this simple use case, the existing big blockchains will collapse one after another. The blockchains´ TPSs (transactions per second) are just not high enough. The results are even more dramatic in more complex — and more realistic — use cases.
The underlying problem
Verifying the above analysis is simple and can be done by anyone: (1) Take the maximum number of monthly transactions each blockchain promises to deliver and (2) divide it by the number of transactions necessary to fulfill one payment per token holder per month for the given number of tokens. The result provides the percentage of the total blockchain capacity that would be required.
For the calculations in this paper, we used the following information which was either provided by the chains themselves or derived from expert estimates:
● Ethereum promises about 13transactions per second (Source: ETH explorer with TPS). This leads to around 34 million transactions per month — which is already insufficient for scenario 2, which requires 100 million payments per month.
● BSC promises about 63transactions per second (Source: TPS BSC and Solana and BSC Chart daily Tx). This implies around 162 million transactions per month — which is not enough for scenario 3, as it requires 1 billion payments per month.
● Cardano promises about 257transactions per second (Source: Cardano TPS from CMC), equivalent to around 692 million transactions per month — also inadequate for scenario 3, which requires 1 billion payments per month.
● Solana promises up to 50,000transactions per second, but this was never seen on the main net (Source: Solana TPS). The actual average is closer to 30,000 transactions per second. This calculates to around 77.7 billion transactions per month — which makes Solana the only blockchain out of the top 10 to cover at least scenario 4.
Another point to consider: For the examples above, there is a correlation between a blockchain’s capacity to handle transactions and the hardware requirements to run a node. The higher the capacity, the higher the hardware requirements and the associated costs of installation and maintenance. Solana, for example, handles about 30,000 transactions per second. However, to accomplish this, nodes need a setup with32vCPUs,128GB RAM, 2048 GB SSD. This requires either a one-time investment of around USD 7,100 (source: Solana Hardware) or a rental fee of around USD 210 per month (source: RISE-4 Solana). Both setups require additional spending on maintenance.