According to Blockchainreporter, blockchain networks have made significant progress in scalability, with average transaction processing speeds rising from 340 TPS in 2020 to 3,400 TPS in 2025. This improvement, highlighted in a16z crypto's 2025 State of Crypto report, has made blockchain faster than major financial systems like Stripe and Nasdaq. COTI CEO Shahaf Bar Geffen stated that speed and cost are no longer barriers for institutional adoption, with sub-cent transactions on Layer-2 networks driving stablecoin volumes to $46 trillion. However, Geffen emphasized that blockchain's transparency remains a major obstacle for institutions, as it exposes sensitive financial data and increases security risks. He noted that while privacy coins like Monero offer strong anonymity, they lack the compliance-friendly features required by institutions. A new wave of blockchains with programmable privacy and selective disclosure is emerging, but widespread integration is still needed to enable institutional adoption.
Blockchain Transaction Speeds Now Exceed Traditional Financial Systems, But Privacy Remains a Hurdle
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