L1 and L2 are vying to claim ultra-high TPS. Is the demand really about speed?

By: blockbeats|2025/04/14 13:45:03

Original Article Title: The Great TPS Lie: Crypto's Obsession With Solving Problems Nobody Has
Original Article Author: @therosieum, @tenprotocol Member
Original Article Translation: Diodeep

Editor's Note: The article criticizes the crypto industry's blind pursuit of high TPS (transactions per second), arguing that this race is based on false advertising and overlooks real user needs. Projects, in order to attract funding and attention, exaggerate lab data, sacrificing decentralization, security, and usability to solve often irrelevant problems. The author calls for a focus on genuinely meaningful blockchain applications, building according to actual use case scales, rather than chasing unrealistic digital fantasies.

The following is the original content (reorganized for ease of understanding):

Every week, a new L1 or L2 project goes live, claiming: "We can process 100,000 transactions per second!"

Sometimes it's 50,000 transactions, sometimes it's 1 million.

The exact number doesn't matter because it's all mostly nonsense.

The "Faster Than Thou" Race of Transaction Speed

The scalability war has devolved into crypto's most embarrassing showdown. Every new protocol must claim a higher TPS than the previous one, regardless of whether these speeds are:

· Achievable beyond their AWS testnet (spoiler: it's almost impossible)

· Meaningful for real-world applications

· Necessary for scenarios used by actual humans

This obsession with throughput is like the crypto world taking a Lamborghini for a joyride during rush hour. The problem isn't with the specs but with the context.

Talking About Real Data

Visa, the payment giant that processes transactions for billions of people globally, averages around 1,700 transactions per second. Their theoretical maximum is around 24,000 TPS, but they have never needed this capacity in decades of operation.

Meanwhile, most blockchain projects struggle to attract even 100 daily active users.

If your Discord emojis outnumber your on-chain transactions, you might be solving a problem that exists only in your imagination.

The Hidden Cost of Chasing "Blockchain Scalability Trilemma"

The obsession with theoretical throughput can lead to real-world issues that harm users.

Firstly, there is the disguised centralization: In pursuit of high TPS, decentralization is often sacrificed for the sake of a marketing number.

Secondly, there is security theater: Cutting corners in hasty scaling introduces vulnerabilities that will sooner or later be exploited.

Furthermore, there is engineering talent drain: Top talent is not building what users really need but instead is stuck optimizing synthetic benchmarks.

Lastly, there is blatant deception: Network propaganda's lab numbers crumble under real-world conditions.

The Unsettling Truth

There are two reasons for the obsession with extreme scalability:

· You need to sound tech-savvy to justify your $100M funding

· You desperately want your chain to stand out in a market of over 5000 blockchains

User needs are only an afterthought. The real game is to make retail investors believe you are the ultimate solution—VCs then act as the loudest KOLs for your TPS narrative.

L1 and L2 are vying to claim ultra-high TPS. Is the demand really about speed?

Building Something Truly Meaningful

If you are really building something in this space, here's a reality check:

· Focus on building things only achievable with blockchain

· Design an economic model that doesn't require monthly rug pulls for user acquisition

· Create a user interface that doesn't make regular people want to smash their computers

· Build to the scale of actual use cases, not for the sake of a flashy pitch deck

Scalability Reality Check

Next time a project boasts about handling 500,000 TPS, ask them: "What are these transactions actually doing? Who is generating them? For what purpose?"

When they stutter about "future adoption" and "web3 social," you'll know the answer.

True innovation isn't theoretical performance in a vacuum; it's about building what people truly need and scaling appropriately to demand.

Everything else is just expensive performance art disguised as technology.

「Original Post Link」

On March 16, 2026, in Dallas, Texas, USA, CanGu Company (New York Stock Exchange code: CANG, hereinafter referred to as "CanGu" or the "Company") today announced its unaudited financial performance for the fourth quarter and full year ended December 31, 2025. As a btc-42">bitcoin mining enterprise relying on a globally operated layout and dedicated to building an integrated energy and AI computing power platform, CanGu is actively advancing its business transformation and infrastructure development.

2025 Full Year and Fourth Quarter Financial and Operational Highlights

• Financial Performance:

Total revenue for the full year 2025 was $688.1 million, with $179.5 million in the fourth quarter.

Bitcoin mining business revenue for the full year was $675.5 million, with $172.4 million in the fourth quarter.

Full-year adjusted EBITDA was $24.5 million, while the fourth quarter was -$156.3 million.

• Mining Operations and Costs:

A total of 6,594.6 bitcoins were mined throughout the year, averaging 18.07 bitcoins per day; of which 1,718.3 bitcoins were mined in the fourth quarter, averaging 18.68 bitcoins per day.

The average mining cost for the full year (excluding miner depreciation) was $79,707 per bitcoin, and for the fourth quarter, it was $84,552;

The all-in sustaining costs were $97,272 and $106,251 per bitcoin, respectively.

As of the end of December 2025, the company has cumulatively produced 7,528.4 bitcoins since entering the bitcoin mining business.

• Strategic Progress:

The company has completed the termination of the American Depositary Receipt (ADR) program and transitioned to a direct listing on the NYSE to enhance information transparency and align with its strategic direction, with a long-term goal of expanding its investor base.

CEO Paul Yu stated: "2025 marked the company's first full year as a bitcoin mining enterprise, characterized by rapid execution and structural reshaping. We completed a comprehensive adjustment of our asset system and established a globally distributed mining network. Additionally, the company introduced a new management team, further strengthening our capabilities and competitive advantage in the digital asset and energy infrastructure space. The completion of the NYSE direct listing and USD pricing also signifies our transformation into a global AI infrastructure company."

"As we enter 2026, the company will continue to optimize its balance sheet structure and enhance operational efficiency and cost resilience through adjustments to the miner portfolio. At the same time, we are advancing our strategic transformation into an AI infrastructure provider. Leveraging EcoHash, we will utilize our capabilities in scalable computing power and energy networks to provide cost-effective AI inference solutions. The relevant site transformations and product development are progressing simultaneously, and the company is well-positioned to sustain its execution in the new phase."

The company's Chief Financial Officer, Michael Zhang, stated: "By 2025, the company is expected to achieve significant revenue growth through its scaled mining operations. Despite recording a net loss of $452.8 million from ongoing operations, mainly due to one-time transformation costs and market-driven fair value adjustments, the company, from a financial perspective, will reduce its leverage, optimize its Bitcoin reserve strategy and liquidity management, introduce new capital to strengthen its financial position, and seize investment opportunities in high-potential areas such as AI infrastructure while navigating market volatility."

Fourth Quarter 2025 Ongoing Operations Financial Performance

Revenue

The total revenue for the fourth quarter was $1.795 billion. Of this, the Bitcoin mining business contributed $1.724 billion in revenue, generating 1,718.3 Bitcoins during the quarter. Revenue from the international automobile trading business was $4.8 million.

Operating Costs and Expenses

The total operating costs and expenses for the fourth quarter amounted to $4.56 billion, primarily attributed to expenses related to the Bitcoin mining business, as well as impairment of mining machines and fair value losses on Bitcoin collateral receivables.

This includes:

· Cost of Revenue (excluding depreciation): $1.553 billion

· Cost of Revenue (depreciation): $38.1 million

· Operating Expenses: $9.9 million (including related-party expenses of $1.1 million)

· Mining Machine Impairment Loss: $81.4 million

· Fair Value Loss on Bitcoin Collateral Receivables: $171.4 million

Profit Situation

The operating loss for the fourth quarter was $276.6 million, a significant increase from a loss of $0.7 million in the same period of 2024, primarily due to the downward trend in Bitcoin prices.

The net loss from ongoing operations was $285 million, compared to a net profit of $2.4 million in the same period last year.

The adjusted EBITDA was -$156.3 million, compared to $2.4 million in the same period last year.

Full Year 2025 Ongoing Operations Financial Performance

Revenue

The total revenue for the full year was $6.881 billion. Of this, the revenue from the Bitcoin mining business was $6.755 billion, with a total output of 6,594.6 Bitcoins for the year. Revenue from the international automobile trading business was $9.8 million.

Operating Costs and Expenses

The total annual operating costs and expenses amount to $1.1 billion.

Specifically, they include:

· Revenue Cost (excluding depreciation): $543.3 million

· Revenue Cost (depreciation): $116.6 million

· Operating Expenses: $28.9 million (including related-party expenses of $1.1 million)

· Miner Impairment Loss: $338.3 million

· Bitcoin Collateral Receivable Fair Value Change Loss: $96.5 million

Profitability

The full-year operating loss is $437.1 million. The continuing operations net loss is $452.8 million, while in 2024, there was a net profit of $4.8 million.

The 2025 non-GAAP adjusted net profit is $24.5 million (compared to $5.7 million in 2024). This measure does not include share-based compensation expenses; refer to "Use of Non-GAAP Financial Measures" for details.

Financial Position

As of December 31, 2025, the company's key assets and liabilities are as follows:

· Cash and Cash Equivalents: $41.2 million

· Bitcoin Collateral Receivable (Non-current, related party): $663.0 million

· Miner Net Value: $248.7 million

· Long-Term Debt (related party): $557.6 million

In February 2026, the company sold 4,451 bitcoins and repaid a portion of related-party long-term debt to reduce financial leverage and optimize the asset-liability structure.

Stock Repurchase

As per the stock repurchase plan disclosed on March 13, 2025, as of December 31, 2025, the company had repurchased a total of 890,155 shares of Class A common stock for approximately $1.2 million.

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