For banks, asset issuers, and market makers, predictability is paramount. Even if a network can process thousands of transactions per second, it is unsuitable for trading if one participant’s actions cause delays in transaction processing, according to a16z’s research findings.
Last year’s report State of Crypto 2025 noted that the throughput of major blockchains increased more than 100-fold over the past five years, from 25 to over 3,400 transactions per second. Today, the situation has changed: experts at a16z report that some blockchains can now process tens of thousands of transactions per second.
However, high transaction speed alone does not provide traders with information about exactly when their transaction will be processed. While a one-second delay may be acceptable for payments, it is unacceptable for traders, especially during periods of high cryptocurrency market volatility—every millisecond matters.
a16z experts cited the example of an order book on a blockchain. If a trader’s cancellation order arrives too late, someone may trade at an outdated price. Market makers account for this risk by widening spreads, which negatively impacts all market participants due to unfavorable prices and reduced liquidity.
Blockchain predictability is ensured by two criteria: censorship resistance and ordering guarantees. Users must be able to submit orders without relying on a single operator whose decisions could affect prices and trade outcomes. Ordering determines an order’s position relative to other orders after it enters the chain; therefore, if a valid transaction reaches the network in a timely manner, it must be included immediately. This is a much stricter standard, analysts at a16z explained.
The a16z researchers proposed the concept of Strong Chain Quality, which would guarantee participants access to certain parts of each block and limit the influence of individual block producers and other participants in the process. Predictability depends on how the platform determines transaction ordering. This requires more complex protocols, but ensures participants can be confident their transactions will be processed even during network congestion.
Last year, lawyers from Andreessen Horowitz urged U.S. authorities to ease regulations on airdrops. The company insists that the free distribution of tokens should not be subject to securities laws.